VZCZCXYZ0000
PP RUEHWEB

DE RUEHRB #1109/01 3331352
ZNR UUUUU ZZH
P 281352Z NOV 08
FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 9380
INFO RUCNMGH/MAGHREB COLLECTIVE
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS RABAT 001109 
 
SENSITIVE 
SIPDIS 
 
STATE FOR ISN/NESS, NEA/MAG AND EEB 
USDOC FOR 3131/USFCS/OIO/RD/CREED/GLITTMAN, HOLLY 
VINEYARD/MAC/ITA/USDOC, MICHELLE ONEILL/OUS/ITA/USDOC 
USDOC PLEASE PASS TO USTDA 
DOE FOR NNSA 
 
E.O. 12958: N/A 
TAGS: ENRG TRGY ETRD TNGD KNNP MO
SUBJECT: MOROCCANS MORE FORWARD-LEANING ON NUCLEAR ENERGY 
THAN EXPECTED 
 
REF: A. RABAT 0693 
     ¶B. RABAT 1058 
 
¶1.  (SBU) Summary: Moroccan government, research, and 
industry leaders told Special Envoy for Nuclear 
Nonproliferation Jackie Wolcott that the Kingdom is preparing 
the necessary infrastructure and legal and regulatory 
framework for nuclear power.  According to the Minister of 
Energy, the decision that Morocco will eventually require 
nuclear energy has essentially been made, although the 
government is not yet ready to announce this "loudly." 
Morocco's nuclear research center is trying to identify the 
steps needed to prepare the knowledge and skills base that 
will be required to support nuclear power production, but the 
National Electricity Office (ONE) seems ready to plunge ahead 
on a contract basis, leaving technical details to be managed 
by private enterprise.  The need for technical, regulatory, 
and planning assistance that will accompany progress toward 
nuclear power will create opportunities for bilateral civil 
nuclear cooperation to help steer Morocco towards a safe, 
secure, and non-proliferating path, as well as openings for 
U.S. companies with nuclear expertise to supply goods and 
services.  End Summary. 
 
--------------------------------------------- 
GOM's Decision Made, U.S. Cooperation Welcome 
--------------------------------------------- 
 
¶2.  (SBU) Secretary General of the Ministry of Foreign 
Affairs and Cooperation (MFA) Youssef Amrani welcomed 
Ambassadors Wolcott and Riley to his first official meeting 
in his new position.  Amrani noted that while the French had 
been pushing Morocco hard to accept (French) civil nuclear 
power programs, up to now Morocco has not committed to 
anything with France.  Technical details of collaboration on 
nuclear technology and energy would be outside of the MFAC's 
purview, Amrani observed, but in general the MFA welcomes all 
areas of cooperation with the U.S.  "Politically, our 
cooperation with you is essential," he stated, and "you will 
always find in Morocco a partner you can trust."  Amrani also 
plugged Morocco's support of global nonproliferation efforts, 
including the Global Initiative to Combat Nuclear Terrorism. 
 
¶3.  (SBU) Minister of Energy, Mines, Water and the 
Environment Amina Benkhadra told the Ambassadors that Morocco 
began considering a nuclear energy industry as early as the 
1960's, and envisions power generation "in the 2020 
timeframe," assuming "all the conditions are right."  In 
fact, she clarified, nuclear energy is a "long-term priority" 
in Morocco's new energy plan (Ref A), especially given that 
96 percent of its energy needs are currently imported.  The 
GOM has "decided that nuclear power is necessary for the long 
term," she added, and as soon as certain "aspects are 
clarified" it can "announce this more loudly."  To lay the 
groundwork for nuclear power, the Ministry's current focus is 
on preparing a legal and regulatory framework, developing 
human resources, and selecting the most suitable technology. 
 
¶4.  (SBU) The Ministry has submitted draft nuclear 
legislation to the Secretary General of the Government for 
parliamentary action, Benkhadra said.  The legislation would 
establish a regulatory framework, including a new regulatory 
body, so as to conform to "international obligations and 
standards."  It was developed with the input and approval of 
the International Atomic Energy Agency (IAEA), and the GOM 
hopes to bring it into force in 2009.  Ambassador Wolcott and 
her delegation applauded Morocco's progress to date and 
encouraged continued cooperation with the IAEA (in 
particular, through the Agency's "Milestones" process, to 
which the U.S. has been a major contributor).  In addition to 
indirect cooperation through the IAEA, Wolcott and her 
delegation noted that the U.S. can offer complementary 
bilateral programs, such as support for setting up regulatory 
bodies, workshops on management and technical requirements 
for a nuclear energy infrastructure, funding for training 
programs, and university partnerships.  In particular, 
officials of the Department of Energy's National Nuclear 
Security Administration (NNSA) reported that a proposal for 
"Technical Assistance in Development of National Regulations 
for Nuclear Power" had been approved by the U.S. and was now 
awaiting approval by the Ministry of Energy and the Moroccan 
National Center of Energy Sciences and Nuclear Techniques 
(CNESTEN). 
 
 
¶5.  (SBU) Minister Benkhadra praised the existing Department 
of Energy/NNSA collaboration with CNESTEN, and expressed her 
hope that this could be "reinforced" in the coming years.  In 
particular, as soon as a political commitment to nuclear 
power is made, Morocco will enter a "new era" where focus 
will be placed on practical steps, in particular training and 
the development of a nuclear regulator.  She noted that the 
Ministry of Energy, Mines, Water and the Environment (MEMEE) 
is the focal point for nuclear power, with technical support 
coming from CNESTEN and the National Electricity Office 
(ONE).  To this end, she reiterated her support for an 
International Training Center (ITC) to be hosted by CNESTEN 
with U.S. support, and inquired into recent advances.  NNSA 
officials reported that U.S. funds had now been allocated to 
purchase equipment for this facility, and that it was hoped 
the GOM would be able to provide funds to build the facility. 
 Minister Benkhadra commented that this multi-purpose 
training center, which could be used for regional courses and 
also offer opportunities for "train the trainer" programs, 
would be a "good starting point" for the future.  NNSA also 
noted that it was co-hosting a seminar with CENSTEN in 
March/April 2009, which would focus on human resources issues 
related to the development of nuclear power. 
 
¶6.  (SBU) Additionally, Minister Benkhadra observed, 
developing countries like Morocco have a great need for 
renewable energy technologies, and hope that advanced 
countries like the U.S. would assist them in fielding more 
renewable energy applications (Ref B).  Nuclear is one 
long-term energy solution for Morocco, Benkhadra explained, 
but renewables are also important, and "easier than nuclear 
energy" to implement in the near term.  "We'll need all these 
kinds of energies in the future," she concluded. 
 
---------------------------------- 
CNESTEN Working to Lay Foundations 
---------------------------------- 
 
¶7.  (SBU) CNESTEN Director General Khalid El Mediouri 
explained that CNESTEN's stated missions, to promote nuclear 
science and technology, to develop a technical base for a 
nuclear power program, and to provide technical support to 
higher level authorities, will each offer critical support 
for a political decision to pursue nuclear power.  El 
Mediouri explained that Morocco's political establishment has 
approached the nuclear energy option by identifying two major 
decision points:  a choice to invest in the infrastructure 
required to prepare for nuclear power (made decades ago), and 
a choice to proceed with power generation (yet to be 
finalized).  The commitments Morocco has already made 
stemming from that first decision are "not trivial," Mediouri 
argued, highlighting the USD 100 million investment in 
CNESTEN's Maamora research center and research reactor. 
(Note:  The latter, a 2 MW TRIGA Mark II reactor from General 
Atomics that was supported in part by export credits from the 
Ex-Im Bank, was commissioned earlier this year and now awaits 
a final license to authorize regular operation.  This license 
is expected within weeks.  End Note).  Despite the high cost, 
the GOM's political commitment would similarly ensure the 
funding to pay for the regulatory, training, and oversight 
functions that would be required to support the deployment of 
nuclear power. 
 
¶8.  (SBU) In potential anticipation of a positive decision, 
CNESTEN has recently been moved from the Ministry of Higher 
Education back to the Ministry of Energy (under which it was 
originally established in 1986).  The Ministry of Energy has 
also recently established a multi-agency commission to 
coordinate nuclear-power-related decision making (similar to 
the Nuclear Energy Program Implementation Office, or NEPIO, 
recommended by the IAEA "Milestones" document.) 
 
¶9.  (SBU) El Mediouri noted that Morocco's most significant 
requirement to prepare for a nuclear power industry will be 
the development of human resources.  It will take time and 
money to train enough people to fill the operational, 
regulatory, and technical positions needed, and a real 
challenge will be creating opportunities for personnel to 
gain experience, for example at power plants overseas, 
without Morocco losing their skills and its investment in 
their training to permanent emigration.  The future ITC is a 
high priority for CNESTEN, El Mediouri asserted, as it will 
 
provide a venue and impetus for greatly expanding Morocco's 
domestic training programs in addition to international 
outreach. 
 
¶10.  (SBU) NNSA already supports many areas of engagement 
with CNESTEN, dating back over 20 years.  In addition to the 
ITC project, DOE is helping CNESTEN to host a workshop on 
human resource development in March/April 2009 which will 
include participants from North Africa and Jordan, the United 
States, and the IAEA.  A series of Action Sheets provide 
pathways for NNSA assistance to CNESTEN in areas such as 
regulatory body development, materials accountability, 
radiation protection/health physics, reactor operations, 
radioactive waste management, implementation of international 
obligations, and other related fields.  DOE and DOS (through 
their financial support of the IAEA) also promote joint 
research and Moroccan participation in scientific and 
technical conferences in nuclear technology.  CNESTEN greatly 
values the continuing cooperation with the USG, El Mediouri 
assured Ambassador Wolcott, and hopes to continue to benefit 
from this cooperation. 
 
--------------------------------------------- ------ 
ONE Proceeding with Plans for Commercial Generation 
--------------------------------------------- ------ 
 
¶11.  (SBU) Amid management turmoil at Morocco's National 
Office of Electricity (ONE's Managing Director was dismissed 
and a replacement named one day before Ambassador Wolcott's 
visit) (septel), Ambassador Wolcott's delegation met with 
ONE's Directors of Finances (Mohammadi Allach), Strategy and 
Planning (Mohamed Fadili), and Electro-nuclear Projects 
(Taheri).  The ONE management team outlined ONE's history of 
studying nuclear technology, including hiring international 
consultants to conduct assessments and feasibility studies in 
the early 1980's.  At that time, with the assistance of the 
French firm SOFRATOME and the IAEA, the managers explained, 
ONE identified and qualified a site (Sidi Boulbra) halfway 
between the coastal cities of Essaouira and Safi, that met 
IAEA standards (such as ease of access, population density, 
and availability of cooling water).  This early feasibility 
study also looked at demographic, geological, hydrological, 
meteorological, seismic, radiation protection, and other 
factors, the managers reported.  Though technically feasible, 
however, the study indicated that electricity generated from 
a nuclear plant would not have been cost competitive at the 
time.  As a result, the project was shelved. 
 
¶12.  (SBU) In 2003 - 2005, ONE again conducted a feasibility 
study (this time handled internally, but again in 
consultation with the IAEA) that indicated the technical and 
economic feasibility of introducing two nuclear power 
generation units of 700 to 1000 megawatts electric (MWe) each 
in 2017 - 2018, using the site identified in the earlier 
study.  At the time of introduction, a 1000 MWe plant would 
constitute about 12 percent of Morocco's projected total 
installed capacity (assuming average growth of 8 percent), 
predicted Planning Director Fadili. 
 
¶13.  (SBU) Nuclear project manager Taheri told Ambassador 
Wolcott's delegation that ONE began a "pre-selection" process 
in 2006 by inviting non-binding offers from interested 
reactor vendors and operators on a proposal to construct, 
operate, and maintain two production units.  ONE would 
consider any of the major commercialized technologies now in 
use, he noted, including pressurized light water reactors 
(PWR), boiling water reactors (BWR), or heavy water reactors 
(such as the Canadian CANDU).  ONE declined to identify the 
firms that responded, but stated that following that initial 
sounding, ONE is now finalizing draft contracts that will 
form the basis for a formal request for proposals.  These 
draft contracts, which have been prepared with assistance 
from a technical consultant (Sargent & Lundy), a legal 
consultant (Simon and Simon), and the IAEA.  ONE anticipates 
hiring an Engineering, Procurement, and Construction (EPC) 
firm which would be tasked with assembling a consortium to 
oversee all aspects of plant deployment (finance, 
construction, operation, maintenance, fresh fuel provision, 
and spent fuel management). 
 
¶14.  (SBU) ONE would likely be a minority partner in the 
consortium, but would be a guaranteed and unique off-taker of 
the produced electricity, which would then be sold to one of 
 
its many distributors, Taheli outlined.  In fact, the 
management team reiterated, ONE intends all of its future 
generation facilities of any technology to fit this model, 
where Independent Power Producers (IPPs) would sign Power 
Purchase Agreements (PPA) with ONE, and financing would be 
provided by a private entity via a Special Purpose Vehicle 
(SPV).  Morocco will need to add 600 to 700 MWe of generating 
capacity each year on average, and a nuclear plant will be 
considered just as any other option.  ONE's sole concern, 
Director of Planning Fadili emphasized, is to purchase 
electricity at the lowest cost possible. 
 
¶15.  (SBU) Ambassador Wolcott's delegation raised concerns 
about potential lack of clear roles for licensing and 
regulatory oversight.  Fadili noted that as a partner in the 
consortium, ONE would be responsible for full compliance with 
the government's regulations.  The GOM's role would include 
regulatory oversight, as well as guarantees that ONE would 
continue to purchase the power as contracted.  The contract 
package will include a "letter of support" from the GOM, 
Allach explained, which would include not only the purchase 
guarantee but assurances to the investor of support for the 
project in the legal and regulatory fields as well. 
Regulatory oversight will come from the proposed regulatory 
body to be created under the draft nuclear legislation, 
Taheri noted, drawing elements from the Ministries of Energy 
and Health, and two extant government committees provide 
guidance on national policy for nuclear energy.  The first is 
a National Council for Nuclear Energy created in the 1980's 
under the Prime Minister, including the Ministers of Energy, 
Health, Industry, Agriculture, and Environment, and the 
second is an ad hoc "Review Committee" recently set up by 
Minister of Energy Benkhadra and including ONE, CNESTEN, 
national phosphate mining company Office Cherifien des 
Phosphates (OCP), and the Ministries of Health and Energy. 
The conclusion of this latter committee on the utility of 
nuclear power is due in 3 to 4 months, ONE stated. 
 
-------------------------------------------- 
Moving Ahead, but Varying Degrees of Clarity 
-------------------------------------------- 
 
¶16.  (SBU) Comment: Moroccan officials seemed much more 
forward-leaning on nuclear power during this visit than in 
previous interactions, from Minister Benkhadra's hinting that 
the decision has already been made, to ONE's apparent 
readiness to issue a tender for nuclear plant construction. 
It was striking that while CNESTEN is most concerned with 
developing a local infrastructure and human knowledge base to 
support a nuclear industry, ONE appears to be willing to 
leave all such concerns to private industry (with regulatory 
oversight from the government).  ONE seems determined to 
treat nuclear power as just another option for electricity 
supplies, emphasizing several times that as long as the 
projected kilowatt-hour cost is less than competing options, 
ONE has no hesitation pursuing a nuclear power plant.  Given 
the advanced state of ONE's preparations to act on an 
expected forthcoming official decision to proceed with 
nuclear power, the delegation recommends that USTDA consider 
sponsoring an Orientation Visit to the U.S. of Moroccan 
government and corporate officials to meet with U.S. 
companies and potential suppliers or service providers in the 
nuclear energy arena.  End Comment. 
 
¶17.  (U) Ambassador Wolcott's delegation included: 
 
-- Ambassador Jackie Wolcott, Special Envoy for Nuclear 
Nonproliferation, Department of State 
-- Alex Burkart, Deputy Director, ISN/NESS, Department of 
State 
-- Marc Humphrey, Special Assistant to the Special Envoy for 
Nuclear Nonproliferation, Department of State 
-- Michael Mayfield, Nuclear Regulatory Commission 
-- Matthew Van Sickle, DOE/National Nuclear Security 
Administration 
-- Moussaddak Bissani, Lawrence Livermore National Laboratory 
 
¶18.  (U) Ambassador Wolcott's party has cleared this cable. 
 
 
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Riley