VZCZCXYZ0000
PP RUEHWEB

DE RUEHTU #1250/01 3591738
ZNR UUUUU ZZH
P 241738Z DEC 08
FM AMEMBASSY TUNIS
TO RUEHC/SECSTATE WASHDC PRIORITY 5848
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUCNMGH/MAGHREB COLLECTIVE

UNCLAS TUNIS 001250 
 
SENSITVE 
SIPDIS 
 
STATE FOR NEA/MAG (NADI AND HAYES) 
STATE PASS USTR (BURKHEAD) AND USAID (MCCLOUD) 
USDOC FOR ITA/MAC/ONE (NATHAN MASON), ADVOCACY CTR (TABINE), AND 
CLDP (TEJTEL AND MCMANUS) 
CASABLANCA FOR FCS (ORTIZ) 
CAIRO FOR FINANCIAL ATTACHE (SEVERENS) 
LONDON AND PARIS FOR NEA WATCHER 
 
E.O. 12958: N/A 
TAGS: ECON ENRG EAID EFIN ETRD TS
SUBJECT: TUNISIA: Nuclear Energy Plans 
 
REF A. STATE 127423 
    ¶B. TUNIS 1193 
 
¶1. (U) This message is in response to Ref A request for Civil 
Nuclear Trade Initiative related information.  The bulk of the 
information was acquired during the November 18 - 20, 2008 visit of 
Special Envoy for Nuclear Non-Proliferation, Jackie Wolcott (Ref 
B). 
 
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Nuclear Development Plans 
------------------------- 
 
¶2. (U) GOT officials explained to visiting Special Envoy Jackie 
Wolcott that they are beginning to look at developing a domestic 
civilian nuclear energy program.  The nascent nuclear regulatory 
commission is developing legislation through which the GOT will 
assign responsibility and authority over the national civilian 
nuclear program to various departments within the government.  The 
public utility, STEG, confirmed that the GOT aims to bring a 
nuclear-powered energy plant online by 2020 to 2023.  To that end, 
STEG is preparing a feasibility study on the future nuclear power 
plant location. 
 
----------- 
Motivations 
----------- 
 
¶3. (SBU) Tunisia is a net importer of energy and fuel, and therefore 
is dependent on its neighbors.  According to representatives from 
STEG, Tunisia imports roughly 60 percent of its natural gas for 
electricity generation from neighboring Algeria.  STEG 
representatives explained that President Ben Ali wants to mitigate 
this energy dependency.  To achieve this goal, the GOT is actively 
seeking to develop alternative energy solutions.  Tunisia has 
experimented with wind power generation and solar panels are 
beginning to be used to power residential water heaters.  However as 
energy demand increases, the GOT is increasingly drawn to nuclear 
power.  The General Manager of STEG explained that the confluence of 
sustained high oil/fuel prices, combined with improved safety 
ratings on nuclear technology, had created a window of opportunity 
for nuclear energy. 
 
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Financing 
--------- 
 
¶4. (SBU) During Special Envoy Wolcott's visit the GOT did not have 
information to share about its financing plans for the nuclear power 
plant or feasibility studies.  The GOT is only looking to build one 
nuclear power plant either in the northern industrial area near 
Bizerte or near the industrial and port city of Sfax.  At present, 
the state-owned utility appears to be the most likely candidate to 
manage the nuclear power plant.  Key government officials involved 
in the development of the nuclear energy plant include: 
 
- Minister Lazhar Bououni, Higher Education, Scientific Research and 
Technology 
- Professor Azza Hamou, Director of the National Center for Radio 
Protection 
- Nafaa Reguigui, Deputy Director of Nuclear Applications, Center 
for Nuclear Science and Technology 
- Zohra Azzouz Berriche, Deputy Director Project Development, Center 
for Nuclear Science and Technology 
- Rabah Jerad, Deputy Managing Director, Tunisian Gas and Electric 
Company, 
- Mustapha Kefihali, Project Manager, Tunisian Gas and Electric 
Company (Nuclear Power Plant feasibility study) 
 
----------- 
Environment 
----------- 
 
¶5. (SBU) The following bullets respond to questions about the 
environment and available resources: 
 
-- Nuclear Regulatory Commission -- Tunisia is developing its 
nuclear regulatory commission as part of draft legislation.  No 
further information on this topic is available at this time. 
 
-- Manufacturing Base -- Tunisia has a developed light 
electronics-manufacturing sector, but the GOT plans to import the 
majority of the needed nuclear technology.  To this end, the GOT 
signed an agreement with France for nuclear technology transfer and 
cooperation during the spring 2008 visit of French President 
Sarkozy.  The GOT has also had talks on nuclear technology with 
South Africa and Canada. 
 
-- Nuclear Workforce Availability -- Tunisia admits to lacking a 
well-trained nuclear work force.  During Special Envoy Wolcott's 
visit representatives from STEG explained that the GOT accepted an 
invitation by the French government to send ten Tunisian scientists 
in an exchange program to study in France.  The GOT is interested in 
additional programs elsewhere to increase the availability of local 
experts. 
 
-- Primary Players -- The state-owned utility expects to play a 
central role in developing, building and bringing online the 
proposed nuclear power plant.  However, the Ministry of Higher 
Education, Scientific Research and Technology has the lead in 
Tunisian engagement with the IAEA. 
 
-- Competition -- France, South Africa, and Canada have 
independently met with GOT officials.  On November 27 - 29, the 
French Embassy hosted a conference on nuclear technology. 
 
----------------------- 
For American Businesses 
----------------------- 
 
¶6. (U) It is unclear when the GOT will release the tender for the 
construction of the nuclear power plant.  The GOT is currently 
engaged in developing a feasibility study to determine the best 
location for the plant.  To this end, Embassy Officials offered the 
GOT a meeting with the Trade Development Agency during the latter's 
visit (the same week as Special Envoy Wolcott's visit) to Tunisia. 
The GOT expressed interest in learning more about US nuclear 
technology during Special Envoy Wolcott's visit.  Areas for possible 
cooperation include construction, construction management, reactor 
sales, fuel cycle service provision, logistics and waste management. 
 GOT civilian nuclear energy plans are nascent. 
 
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Comment 
------- 
 
¶7. (U) Tunisia signed a framework agreement of cooperation  with 
France in May of 2006 during President Sarkosy's visit earlier this 
year.  As follow up the French Embassy and several French ministries 
organized a nuclear technology conference held on November 27 and 28 
as one of several such events.  Despite the advanced state of 
Tunisian-French nuclear cooperation, the GOT expressed interest in 
learning more about US technology during Special Envoy Wolcott's 
visit.  End Comment. 
 
 
GODEC