SAUDI ARABIA CAUTIOUSLY CONSIDERING CIVIL NUCLEAR POWER

UNCLAS RIYADH 000161 SENSITIVE SIPDIS DEPT FOR NEA/ARP, ISN/CTR, ISN/NESS, ISN/RA, AND EEB/ESC/IEC DEPT PLEASE PASS TO NRC(FREELAND) AND NNSA(VAN SICKLE) E.O. 12958: N/A TAGS: ENRG KNNP PREL SA SUBJECT: SAUDI ARABIA CAUTIOUSLY CONSIDERING CIVIL NUCLEAR POWER ¶1. (SBU) Summary: A U.S. interagency delegation briefed KACST VP Dr. Prince Turki bin Saud January 23 on possible areas of cooperation with the United States on civil nuclear power. Prince Turki said KACST would issue a Request for Proposals in the next few months for a consulting firm to conduct an assessment of the feasibility of developing a civilian nuclear program in Saudi Arabia. End summary. SAG to Issue RFP "Soon" -------------- ¶2. (SBU) A U.S. interagency delegation visited the King Abdulaziz City for Science and Technology (KACST) and briefed KACST VP for Research Institutes Dr. Prince Turki bin Saud bin Mohamed Al Saud January 23 on possible areas of cooperation with the United States on civil nuclear power. ISN/NESS Deputy Director Alex Burkart noted that President Obama has made clear that the United States supports the responsible deployment of nuclear power. He emphasized that with the bilateral civil nuclear cooperation MOU in place (signed May 2008 and in effect since January 2009),there are many opportunities to cooperate but the USG is "frankly a little disappointed" that we have not been able to move further faster. He said the U.S. group was here in part to find out more about Saudi goals and recent activities in the nuclear field. Burkart concluded by stating there are numerous opportunities for cooperation between our governments, many of which could help Saudi Arabia decide how best to approach developing a civilian nuclear program, and noting that the U.S. delegation included experts from technical USG agencies who were prepared to brief on primary USG infrastructure development programs. ¶3. (SBU) Prince Turki emphasized that Saudi Arabia recognized the importance of nuclear energy and that the Kingdom hoped to have civilian nuclear power reactors in the future. However, the Saudi government still needed to study carefully all issues involved, especially related to environmental, human capital, and construction costs and requirements. He said KACST plans to issue a Request for Proposals (RFP) in the next few months to consider economic and technical aspects related to the deployment of nuclear power, and U.S. private sector bids would be "certainly welcome." He said Saudi Arabia was being careful not to "jump in too soon" to nuclear, and it was focused on building the required Saudi capacity to run such a program. For example, Turki noted that KASCT had been in contact with the Massachusetts Institute of Technology (MIT) regarding nuclear training and research collaborations. All Gulf countries are moving quickly in pursuit of nuclear power, and small countries (i.e., the UAE) are racing ahead, but Saudi Arabia needs a clear economic case for nuclear power to be demonstrated. Turki said the Kingdom should think before it acts, but "once the feasibility plan is complete, we will move forward." This will be a government-wide decision, not just KACST. Independent Nuclear Regulators -------------- -- ¶4. (SBU) The U.S. Nuclear Regulatory Commission's (NRC) Mickey Freeland explained the U.S. nuclear regulatory model to the Prince. He said that the U.S. nuclear industry has benefited greatly from the NRC''s independence from other USG entities. NRC is willing to help Saudi Arabia to develop its capabilities in this area and also could help KACST or other Saudi institutions participate in key international organizations. He explained the structure of the NRC and that it earns 85-90% of its budget from fees. Freeland said NRC also could help the Saudis develop capabilities regarding the control of radioactive materials. He touted NRC's transparency and openness to the public, which helps NRC engage successfully with other institutions. Prince Turki said he found the presentation "very useful," and asked about the size of the agency and where is sits relative to the President's office in the USG bureaucracy. ¶5. (SBU) Prince Turki said KACST remains responsible for Saudi nuclear regulation at this stage. Its atomic research institute spun off a regulatory authority, but this new institution still falls within KACST. In a country like Saudi Arabia, the number of Saudis capable of serving effectively as nuclear regulators is small, he said, so it is a great challenge to maintain the necessary cadre of professional expertise. Therefore, in his view, it is necessary to embed the Kingdom's nuclear regulatory authority within a larger institution. Freeland said the U.S. understood that logic, and recognized that other nuclear regulatory frameworks (e.g., French and Chinese) also have merit. Possible training and cooperation -------------- ¶6. (SBU) Matt Van Sickle from the International Safeguards and Engagement Program (INSEP),National Nuclear Security Administration (NNSA),discussed training and workshops that Saudi Arabia could join. He noted that the Kingdom had sent a participant to a nuclear safeguards course organized by Sandia in May. Van Sickle also briefed the Prince on a variety of upcoming regional training opportunities. (Note: Saudi Arabia did not send representatives to the 2009 Middle East Infrastructure Preparedness Workshop and sent one participant to the 2009 Technical Training on International Safeguards. End Note.) ISN/CTR AAAS Fellow Ben Brodsky described the Partnership for Nuclear Security (PNS),a Department of State program focused on engaging nuclear experts in emerging countries through a number of activities. Brodsky and Van Sickle noted that both INSEP and PNS provide opportunities in nuclear fields outside of power generation. ISN/NESS's Marc Humphrey provided a briefing on the Infrastructure Development Working Group of the Global Nuclear Energy Partnership (GNEP). ¶7. (SBU) Burkart said there are many additional training opportunities that also could benefit KACST and Saudi Arabia. For example, the USG also spends money training foreign experts through the IAEA. We are facilitating a program to allow Jordanian undergraduate students to train remotely on a research reactor at North Carolina State University via the internet and video conferencing. This program is much cheaper than the typical cost of building a research reactor. Prince Turki expressed particular interest in the "internet reactor" program. Burkart therefore encouraged Saudi Arabia to send a representative to a IAEA-sponsored conference on human resource development, to be held in Abu Dhabi in March, where this concept would be presented in greater detail. Comment -------------- ¶8. (SBU)Post very much appreciates the time the interagency team took to meet with the KACST officials and explain areas of potential cooperation. Prince Turki's comments confirm that there is still an active debate within the Saudi Government about whether, and how, to develop a civilian nuclear program. While a number of Saudi officials are persuaded they need to pursue options like nuclear power to address rapidly expanding energy demand, they are also aware of the challenges involved in ensuring that such a program would meet its international safety and security obligations. In that regard, the interagency trip was well timed and very helpful in explaining potential assistance the USG could offer Saudi Arabia as it thinks through this issue. We also take careful note of Prince Turki's news that Saudi Arabia will "soon" issue an RFP for a consultant to produce a thorough assessment of what it would require as a welcome serious step forward. Smith