VZCZCXYZ0000
PP RUEHWEB

DE RUEHEG #1146/01 1571343
ZNR UUUUU ZZH
P 051343Z JUN 08
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC PRIORITY 9455
INFO RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS CAIRO 001146 
 
SIPDIS 
 
ISN/RA FOR STUKALIN 
NEA/ELA FOR NAFZIGER 
 
E.O. 12958: N/A 
TAGS: ENRG EWWT SENV IAEA EG
SUBJECT: AMBASSADOR, ELECTRICITY MINISTER DISCUSS NUCLEAR 
ENERGY COOPERATION, CONVENTIONAL POWER AND RENEWABLE ENERGY 
SOURCES 
 
REF: CAIRO 190 
 
¶1. Summary:  During the Ambassador's introductory call on 
Electricity and Energy Minister Hassan Younes June 3, Younes 
expressed interest in renewing bilateral cooperation on 
civilian nuclear power, and specifically requested technical 
assistance training on regulatory matters.  Younes said that 
the GOE has finalized its draft nuclear regulatory bill in 
consultation with the IAEA and plans to submit the bill to 
parliament in the fall of 2008.  He noted that the GOE plans 
to finance its nuclear power industry with public funds. 
Younes said that the GOE has a plan to add to its annual 
conventional electricity production capability through 2027, 
and is committed to developing solar and wind power.  The 
Ambassador reaffirmed U.S. support for a bilateral 
partnership to develop Egyptian civilian nuclear power, and 
noted that Ambassador Wolcott's delegation would discuss 
specific means of cooperation during its June 8-9 visit to 
Cairo.  The Ambassador advocated on behalf of Bechtel's 
nuclear consulting bid, and Emerson Corporation's bid to 
upgrade controls at a conventional power plant.  End Summary. 
 
 
-------------------------- 
Nuclear Energy Cooperation 
-------------------------- 
 
¶2. The Minister praised previous U.S.-Egyptian nuclear energy 
cooperation efforts, and said he is interested in renewing 
this partnership.  Minister Younes said he and Energy 
Secretary Bodman agreed in January (reftel) to continue 
bilateral cooperation on nuclear and conventional power.  The 
Ambassador noted Ambassador Wolcott's upcoming June 8-9 visit 
to Cairo, and said that the U.S. delegation will be 
discussing bilateral nuclear energy cooperation with GOE 
counterparts.  The Ambassador said that the U.S. hopes to 
partner with the GOE to develop Egyptian resources and 
technical capacity for civilian nuclear energy.  The 
Ambassador urged the Minister to strongly consider Bechtel's 
bid for the nuclear power plant consulting contract the GOE 
is currently reviewing.  The Minister noted that, separately, 
Bechtel has formed a partnership with an Egyptian company to 
develop conventional power plants in Egypt. 
 
¶3. Younes said that following close consultation with the 
IAEA, the GOE has finalized its draft bill that will 
establish an independent regulatory structure for licensing 
nuclear power plants.  Younes noted that the GOE had worked 
with the IAEA to ensure that the draft bill complies fully 
with international regulations.  He said that the GOE plans 
to introduce the bill to parliament during the November 2008 
fall session.  Younes said that the GOE plans to fund the 
nuclear power plants "100 percent" with public money in order 
to mitigate the high risk involved in such a venture.  He 
said that the GOE had studied neighboring countries' attempts 
to begin a civilian nuclear industry, and concluded that all 
private efforts had failed.  Younes assessed that if the GOE 
assumed the financial risk, with the assistance of loans from 
international funding agencies, the overall cost of the 
project would be lower.  He expressed an interest in 
receiving technical assistance from the U.S. to train his 
staff in nuclear regulatory issues.  The Ambassador suggested 
that the Minister could visit Oak Ridge or Sandia National 
Labs to view U.S. nuclear research. 
 
------------------ 
Conventional Power 
------------------ 
 
¶4. Younes said that the GOE plans to add 1500-1700 Megawatts 
annually to its conventional electrical power capability 
through 2027.  He noted that GOE-owned, privately operated 
companies supply electrical power to Egyptian consumers with 
subsidized fuel, lowering prices significantly.  The 
Ambassador said that a U.S. Company, Emerson Corporation, is 
bidding on a contract to upgrade controls at the West Delta 
Power Plant, and encouraged the Minister to consider its bid. 
 The Ambassador said that Emerson had discounted its bid, and 
that its Japanese competitor had then done the same.  The 
Minister said that the GOE would not take the discounts into 
consideration when choosing between the two companies, but 
would plan to pay the eventual contract at the discounted 
price. 
 
---------------- 
Renewable Energy 
---------------- 
 
 
¶5. Younes said that Egypt is exploring energy alternatives to 
fossil fuels, such as nuclear, solar and wind power, out of 
necessity.  He said that fossil fuels are increasingly 
expensive, are a limited and finite resource, and are in 
great demand from consumers.  He noted that Egypt has much 
potential for harnessing renewable energy sources, and said 
that in cooperation with the Danish Reno Institute, Egypt had 
finalized a "wind atlas" that has tracked Egyptian wind 
patterns over the past several years.  The Minister said that 
solar power is very expensive, but the GOE has started work 
on a solar-thermal power plant, in cooperation with a similar 
plant in California, that is scheduled for completion in 
¶2010. 
SCOBEY