The bids on the construction of the second nuclear power plant, the Duwaiheen nuclear plant project, face a major setback. The 30 April bid deadline for nuclear technology providers interested in the project was postponed indefinitely. There are no clear indications of a new tender closing date while interested bidders wait to submit their proposals. The main reason for the postponement of the tendering process is the level of stability in the Gulf region. This is mostly attributed to the political instability currently being witnessed in regions such as Israel and Gaza. This particular reason has called for the automatic postponement of the second nuclear power plant in the Arab world. Various companies that are invited and expected to bid on the contract include several international-based companies. This includes the China National Nuclear Corporation (CNNC) headquartered in China and Rosatom in Russia.
The Expected Bidders For the Construction of the Duwaiheen Nuclear Plant Project
The construction of the second nuclear power plant in the Arab world, the Duwaiheen nuclear plant project, aims to bring on board several contractors. Apart from the two mentioned above, the project also expects bids from the Korea Electric Power Corporation (Kepco) based in South Korea. It also anticipates a bid from France-headquartered EDF group. The project is in the bid invitation specification stage with no direct negotiations. Negotiations between the client company and potential bidders are still at a stalemate at this stage and is expected to advance in time. The ongoing conflict in Gaza is not likely to help in this objective hence the postponement of the project’s implementation. The project is expected to immensely facilitate in the production of renewable and reliable energy once completed.
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The Significance of the Second Nuclear Power Plant in the Arab World
Saudi Arabia plans to build a large-scale nuclear power plant facility as part of its energy diversification agenda. Once completed, the Duwaiheen power nuclear plant project is expected to immensely facilitate in sustainable energy transition. The nuclear power plant is expected to be procured using a traditional design-and-build model. In September 2016, Saudi Arabia had began carrying out technical and economic feasibility studies for the first reactors. It was also looking at possible locations to construct the first nuclear project in Saudi Arabia, a 2.8GW facility. The favourable place for the project was subsequently chosen for the first project. A site at Khor Duwaiheen, on the coast near the UAE and Qatari borders. The project is expected to be a supplement to the country’s renewable energy sources and facilitate in transition to eco-friendly energy sources.
The State of Affairs Regarding the Project’s Implementation
The ongoing conflict between Israel, Gaza, and other neighbouring countries appears to be a major challenge. It has forced an extension in the procurement timeline of the Duwaiheen nuclear plant project. The ongoing conflict in Gaza is not likely to help advance negotiations between the countries with a key stake in the project. The Kingdom seeks to use its nuclear power plant project, along with plans to enrich uranium sources. This will be used as part of its industrial strategy as well as a bargaining chip with the US government. The White House is pushing for the normalization of relations between Israel and Saudi Arabia. It is also opposed to uranium enrichment.
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