CZECH MFA INTEREST IN UAE NUCLEAR DEAL

C O N F I D E N T I A L ABU DHABI 000041 SIPDIS E.O. 12958: DECL: 2020/01/27 TAGS: ENRG KNNP TRGY EZ AE SUBJECT: CZECH MFA INTEREST IN UAE NUCLEAR DEAL REF: PRAGUE 705; ABU DHABI 1173 CLASSIFIED BY: Richard G. Olson, Ambassador; REASON: 1.4(B),(D) ¶1. (C) During a January 20 meeting, visiting Czech MFA Ambassador-at-Large Vaclav Bartuska asked the Ambassador about the UAE's recent selection of KEPCO to build and operate four new nuclear power plants (Ref B). Bartuska, who was in Abu Dhabi attending the World Future Energy Summit and requested a meeting with the Ambassador, explained that the Czech Republic is soliciting bids from Westinghouse, Areva and Russia's AtomStroyExport for up to five new nuclear reactors (Ref A). Bartuska said he is strongly against the Russian bid, but fears that the UAE's decision against French and US technology could be used by Czech officials to justify the selection of better-priced Russian technology. ¶2. (C) The Ambassador explained that the UAE's decision was largely based on price, as KEPCO's bid was almost half the cost of Areva's or GE/Hitachi's. Bartuska said AtomStroyExport is also the cheapest bidder in the Czech tender, and that CEZ had argued for its inclusion in order to drive competitors' prices lower. He noted that while Westinghouse's price was "okay," he expected the operating costs could likely be negotiated lower. OLSON