GNEP INFRASTRUCTURE DEVELOPMENT WORKING GROUP DRAWS BROAD

UNCLAS SECTION 01 OF 05 UNVIE VIENNA 000575

SIPDIS

STATE FOR ISN/NESS - BURKART AND CARNAHAN
DOE NE - MCGINNIS AND WELLING
PARIS FOR USOECD - CLAPPER

E.O. 12958: N/A
TAGS: ENRG TRGY KNNP IAEA
SUBJECT: GNEP INFRASTRUCTURE DEVELOPMENT WORKING GROUP DRAWS BROAD
AND SUBSTANTIVE PARTICIPATION


1. Summary: The Global Nuclear Energy Partnership (GNEP)
Infrastructure Development Working Group (IDWG) held its fifth
meeting December 9-10, 2009, in Vienna, under U.S. chairmanship.
Approximately 85 representatives from GNEP partner and observer
countries, the International Atomic Energy Agency (IAEA)
Secretariat, other international organizations, business and
academia attended the meeting and workshop. Participants discussed
priorities and activities the IDWG is undertaking in radioactive
waste management, human resources development, small and medium
reactors, country assessments, interaction with specialist
organizations, and the IDWG Resource Library. One day of the
meeting featured a workshop on nuclear power plant and waste
management financing. Sustained attendance by representatives from
Argentina and Brazil was a notable advance from previous meetings.
End Summary.


2. Background: The GNEP international partnership was formally
established in September 2007 when 16 countries signed the GNEP
Statement of Principles to become partners. The partnership now
comprises 25 partner countries: Armenia, Australia, Bulgaria,
Canada, China, Estonia, France, Ghana, Hungary, Italy, Japan,
Jordan, Kazakhstan, the Republic of Korea, Lithuania, Morocco, Oman,
Poland, Romania, the Russian Federation, Senegal, Slovenia, Ukraine,
the United Kingdom and the United States. There are 31 countries
invited to join the partnership that may attend meetings as
observers: Algeria, Argentina, Bahrain, Bangladesh, Belgium, Brazil,
Czech Republic, Egypt, Finland, Georgia, Germany, Greece, Kenya,
Kuwait, Latvia, Malaysia, Mexico, Mongolia, Netherlands, Nigeria,
Slovakia, South Africa, Spain, Sweden, Switzerland, Tanzania,
Tunisia, Turkey, Uganda, United Arab Emirates and Vietnam. Finally,
there are three GNEP observer organizations: the International
Atomic Energy Agency (IAEA),Euratom, and the Generation IV
International Forum. GNEP consists of an Executive Committee of
ministerial-level officials, a Steering Group and working groups on
Infrastructure Development and Reliable Nuclear Fuel Services. The
most recent GNEP Executive Committee ministerial meeting was held
October 23, 2009 in Beijing, China.


3. Background continued: The objective of the IDWG is to facilitate
the development of the infrastructure needed for the use of clean,
sustainable nuclear energy worldwide in a safe and secure manner,
while at the same time reducing the risk of nuclear proliferation.
The IDWG focuses on partners' main infrastructure development needs
and challenges and pursues activities to address those needs and
challenges. It has six activity areas: 1) human resource
development; 2) radioactive waste management; 3) small and medium
reactors; 4) engagement with specialist organizations in the global
nuclear power arena; 5) nuclear energy feasibility
studies/assessments; 6) and the creation of an on-line Resource

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4. Meeting Participation: The IDWG's fifth meeting was open to all
GNEP Partner and observer countries. Partner countries that
attended the IDWG meeting were Bulgaria, Canada, China, France,
Hungary, Italy, Japan, the Republic of Korea, Lithuania, Poland,
Russia, Slovenia, the United Kingdom and the United States.
Observer countries in attendance were Argentina, Brazil, Germany,
Netherlands and Slovakia. The IAEA participated as an observer
organization. Three universities, 16 businesses, the World
Association of Nuclear Operators and the Organization for Economic
Cooperation and Development also participated in the meeting and/or
workshop.


5. Radioactive Waste Management Subgroup: The subgroup, led by the
United Kingdom, presented the results of three studies performed by
partner countries. Bulgaria presented on funding approaches for
waste management and decommissioning/ dismantlement of
infrastructure; the U.S. presented on interactions with public
stakeholders for radioactive waste management strategies, including
the site selection process for disposal facilities and other
decision making activities; and the UK presented its review of
current R&D efforts to gain a common understanding of R&D gaps in
the area of waste management, decommissioning, and clean-up. Future
areas of analyses under consideration by the partners could include
R&D mapping - who does what and why - and safe and secure storage
and transport of radioactive waste.


6. Human Resource Development: In the area of human resource
development, the UK's National Skills Academy for Nuclear presented
on its concept for an international skills passport in the nuclear
energy field so that employees' skills could be recognized between
plants. Tied to the skills passport concept was a presentation from
the UK's Nuclear Decommissioning Authority on resource coding,
through which nuclear power plants would form a common set of codes
for each position at a nuclear facility. The IDWG may work to
assess the broader applicability of these initiatives to partner
countries. In addition, the IDWG is working to provide a range of
exchange programs to participating countries, mostly at the
professional level. Opportunities were presented by the UK, Texas A
and M University and the University of California, Berkeley for new
graduates entering the workplace, high school teachers, and
university professors. The U.S. reported on its experience with an
exchange employee from the UK's "nuclear graduates" program. The
U.S. also demonstrated a human resources development modeling tool
developed by Los Alamos National Laboratory which could be used by
countries to predict future human resource needs. Finally, the IAEA
presented on its human resources development initiatives and France

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provided additional insights into its efforts to analyze
perspectives on global human resource needs based on partner country
surveys. The IDWG tentatively plans to hold a workshop focused on
human resource development at its next meeting in May 2010.


7. Small and Medium Reactors: The U.S. Nuclear Regulatory Commission
(NRC) informed the IDWG about the status of its efforts to prepare
for licensing of small reactors in the United States. The firm
Babcock and Wilcox then provided information on its new mPower
reactor and an anticipated timeline for reactor licensing. The
Korean Atomic Energy Research Institute provided an update on the
development of its SMART reactor and licensing by the South Korean
regulatory agency.


8. Support to Partner Countries for Implementation of Nuclear Energy
Infrastructure Development - Assessments: Steve Goldberg of Argonne
National Laboratory informed the IDWG about the lessons learned,
methodology and key generic findings from the United States'
infrastructure assessment in Ghana, begun earlier this year. The
assessment focused on selected issues listed under the IAEA's
publication, Milestones in the Development of a National
Infrastructure for Nuclear Power, because Ghana is just beginning to
plan for a nuclear power program. The IDWG is now seeking a new
partner country for which to perform an infrastructure assessment.
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9. Establishing Linkages with Specialist Organizations: The IDWG
seeks to establish contact with external organizations that are
involved in international nuclear energy development to tap into a
broader set of experiences and resources. The World Association of
Nuclear Operators (WANO) was invited to attend the meeting and
presented on its activities and safety culture. In addition, the
U.S. NRC provided information on its international activities and
expressed the need for a coordination mechanism for international
engagement on nuclear safety. The IDWG will discuss opportunities
for possible engagement in this area.


10. Resource Library Update: The U.S. reported it had revised the
online IDWG Resource Library, now located at
https://www.gneplibrary.org, and provided a demonstration. Partner
countries have been populating the library and the IDWG will seek a
new set of countries to contribute information to the library prior
to the next IDWG meeting in May. Meeting presentations are posted
on the Resource Library.


11. Resources and Gaps Workshop: On December 10, 2009, the IDWG held
a Resources and Gaps Workshop focusing on financing options for
nuclear power plant construction and waste management. Experts from
government, industry, the IAEA and the Organization for Economic
Cooperation and Development (OECD) shared information on financing

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challenges and strategies to overcome these challenges. The workshop
featured four panel discussions. The first panel addressed current
financing options, challenges and risk management strategies. The
second panel provided country and industry perspectives on
financing, including an overview of how South Korea has financed its
nuclear power plant construction and China's financing strategies.
A French government official outlined the important role government
must play by providing a political commitment to nuclear power and
by creating a skilled and competent regulatory authority, a clear
and predictable licensing regime and a stable electricity market.
Other topics discussed included the importance of addressing
financing approaches in other areas addressed by the IDWG such as
human resources development and radioactive waste management.
Finally, Areva spoke on risk allocation and the uncertainty
associated with new financing options such as merchant plants and
build-operate-transfer (BOT) plants when compared to traditional
financing models. Some of the countries present suggested that
encouraging the World Bank to change its policies to support nuclear
power plant construction would be beneficial. The third panel
featured presentations by Deutsche Bank, Fitch Ratings and Societe
Generale on financing strategies and options. State/ISN presented
on the need for an international nuclear liability regime such as
the Convention on Supplementary Compensation for Nuclear Damage.
Lastly, the OECD presented on the new framework its members adopted
in June 2009 that gives improved terms for export credit support in
the area of nuclear power. The final panel featured a presentation
by the UK on financing strategies for radioactive waste management,
a Bulgarian presentation on funding approaches for waste management
and decommissioning/dismantling of infrastructure, and a
presentation by the chairman of the Lithuanian Electricity
Organization on regional approaches to financing.


12. Next Steps: The IDWG tentatively agreed to hold its next meeting
in May 2010 with a workshop on human resources development. The
IDWG will also pursue additional analyses in radioactive waste
management, organize additional professional exchanges, select a
country for an infrastructure assessment, provide updates on small
and medium reactor development and related infrastructure issues,
review options for pursuing international safety coordination and
assistance for member countries with financing strategies. Finally,
the IDWG will continue to coordinate closely with the IAEA.


13. USDEL to the GNEP IDWG prepared this report. U.S.
participation in the meeting included DoE (Office of Nuclear Energy,
Office of Civilian Radioactive Waste Management, and National
Nuclear Security Administration),State ISN/NESS, Commerce, the
Nuclear Regulatory Commission, and Msnoffs.

DAVIES

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