This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS WARSAW 000792 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR EUR/NCE DKOSTELANCIK AND MSESSUMS 
 
E.O. 12958: N/A 
TAGS: AORC ENRG KNNP TRGY PL IAEA
SUBJECT: IAEA/HEU MINIMIZATION: POLAND CONCERNED OVER GTRI 
PROJECT - WARSAW FOLLOW-UP MEETING 
 
REF: UNVIE VIEN 329 
 
Sensitive but unclassified - not for internet distribution 
 
¶1.  (SBU)  Summary.  Polish National Atomic Energy Agency 
(PAA) staff confirmed the GOP is concerned about the 
increasing costs associated with the GTRI project.  PAA 
President Jerzy Niewodniczanski estimates that the provision 
of 25 fresh fuel elements will cost between USD 1.5 - 2 
million, money that has not been budgeted for the project. 
In addition, Niewodniczanski stated that fresh fuel costs 
will likely rise by three or four times in the long term, 
which causes great concern for the GOP.  He expected that 
resolution of the issue would require political discussions 
in Vienna or Washington.  End Summary. 
 
¶2.  (SBU)  In response to reftel econoff met with staff from 
the Polish National Atomic Energy Agency (PAA) on April 28, 
¶2006.  Though econoff expected to meet only with Wieslaw 
Szmek, Chief Specialist, the GOP was represented by an 
addtional eight people from PAA, the Maria Reactor, and the 
Ministry of State Treasury.  The conversation began with 
discussions on technical problems that are currently 
preventing the HEU spent fuel rod program from moving ahead. 
These details, concerning the licensing process for new 
transportation casks and basket shapes, are known to DOE 
staff who frequently travel to Poland and are being resolved, 
albeit slowly, remarked Director Wlodzimierz Tomczak, 
Director of the Radioactive Waste Management Plant (ZUOP). 
 
¶3.  (SBU)  Discussion then turned to GTRI and concerns the 
GOP has over the future of the program.  Niewodniczanski 
noted that in addition to the USD 800,000 (already covered by 
the program) for conversion studies, the GOP would likely 
incur heavy costs as the project stretches into the medium 
and long-terms.  He suggested, for example, that a French 
company would likely win the May tender for fresh fuel 
provision, and thus become Poland's new supplier.  The cost 
of procuring 25 fresh fuel units from this company would cost 
between USD 1.5 - 2 million.  He stated that this amount of 
money is simply not available to the Maria reactor.  In 
addition, Niewodniczanski expected a long-term increase in 
fuel costs of three to four times the current price.  Again, 
there is no plan, hence no means, to cover these costs. 
 
¶4.  (SBU)  Niewodniczanski also noted the GOP has technical 
concerns about the future of the program, but these are 
heavily outweighed by the financial concerns surrounding 
conversion.  He noted a demarche was being prepared on the 
subject, and that several GOP agencies are involved in the 
discussion on how to proceed.  Niewodniczanski specifically 
mentioned Director Kupiecki and Vice-Director Chomicki of the 
MFA's Department of Security. 
 
¶5.  (SBU)  Comment:  Post is not in a position to judge the 
validity of Niewodniczanski's costs estimates.  However, it 
seems apparent that the GOP is well coordinated on this issue 
and is likely to press the USG for additional funding to 
cover what they consider additional costs of program 
implementation. 
ASHE