The Emirates Nuclear Energy Corporation

2014

UAE Demand for Electricity

18593

21548

24126

27323

29444

31211 32814

34238

35881 37394

39104

40858

15546 13224

11742

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

MW

Total UAE Committed Capacity Total UAE Projected Demand

2

Why Nuclear Energy?

3

Comparison between types of Energy

4

• Nuclear Energy is

also incredibly

efficient.

• one small uranium

pellet produces the

same amount of

energy as 1 ton of

coal or 474 liters of

oil.

The UAE Policy on Peaceful Nuclear Energy

Policy Principles:

• Complete operational transparency

• Highest standards of non-

proliferation

• Highest standards of safety and

security

• Conformance to IAEA standards

• Partnerships with the Governments

and firms of responsible nations, as

well as with the assistance of

appropriate expert organizations

• A program that best ensures long-

term sustainability

Policy released in April 2008

5

Emirates Nuclear Energy Corporation

• Vision: Powering the future growth

and prosperity of the UAE through the

safe an sustainable civil nuclear

energy programme

• Mission: To deliver safe, clean,

efficient and reliable nuclear power to

the UAE grid by 2017 while

developing our people and building

sustainable nuclear operational

capability

6

The Organizational and Regulatory Entity in the Nuclear

Energy in the UAE

FANR is an independent federal agency responsible

for the regulation and licensing of all nuclear energy

activities in the UAE, including all of ENEC’s

operations, with public safety as its primary objective.

FANR’s role is to enforce high standards, encourage

self-correction and best practices across the UAE

Federal Authority for Nuclear Regulation

• April 2010: ENEC submitted two license applications:

• Site Preparation License for Units 1-4: site preparation activities that are not related no nuclear safety

• Limited Construction License application

• December 2010: ENEC submitted the Construction License Application for Units 1 & 2 to FANR, presenting the safety case for the APR-1400 technology, the construction plants and the preferred site

• October 2011: approval for additional preparatory, non-nuclear work • July 2012: CLA approval for unit 1 & 2 was obtained • February 2013: ENEC Submitted the Construction License Application

(CLA) for Barakah Units 3 & 4

Environment Agency – Abu Dhabi

• The Environment Agency – Abu Dhabi (EAD) was established

in 1996. EAD is the Government entity responsible for

championing environmental sustainability, protecting the

environment and wildlife of the Emirate of Abu Dhabi, and

ensuring that the economic vision for Abu Dhabi is achieved

in a way that protects our natural heritage and maintains a

good quality of life for all, now and in the future.

• April 2010: ENEC Submitted Non-nuclear Environmental

Impact Assessment (EIA)

Non-nuclear Environmental Impact Assessment (EIA)

to EAD for Units 1, 2, 3 and 4

• December 2010: ENEC Submitted Nuclear Environmental

Impact Assessment (EIA)

Nuclear Environmental Impact Assessment (EIA) for

Units 1, 2, 3 and 4 - addressing environmental

impacts and mitigation including for construction work

9

International Support

• The UAE Nuclear Energy Program has

received full support from the international

community.

• The UAE’s policies and approach in

nuclear energy have received confidence

of government officials, non-proliferation

advocates, and energy experts worldwide.

• The UAE Nuclear Energy Program has

been described as the “gold standard” for

countries interested in exploring nuclear

energy for the first time.

Selection of Prime Contractor

• In December 2009, ENEC announced

the selection of a consortium led by the

Korea Electric Power Corporation as the

winning bidder for the UAE nuclear

energy program

• The contract calls for KEPCO to design,

build and help operate four APR1400

nuclear power plants

• KEPCO is the world’s third largest

nuclear energy business

Operates 20 commercial nuclear

power units, with eight more units

currently under construction and 10

more units planned to be built by

2030

11

ENEC Evaluation Process:

1. Safety: All three teams involved in the Prime

Contractor Selection demonstrated that their

technology and safety programs met the latest

international standards

2. Deliverability: A demonstrated ability to meet the

ENEC program goals

3. Contract Compliance: Conformance with ENEC’s

proposed “prime contractor” business structure

12

ENEC Evaluation Process:

13

4. Human Resource Development: A

commitment to, and detailed planning for human

resource development in the UAE

5. Commercial Competitiveness: A commercial

proposal that promoted UAE economic

competitiveness via the provision of low-cost

electricity

Main Contractor

14

Operations Design Fuel

Installment Maintenance Equipment Construction

Selected Site: Barakah

The Reason behind choosing Barakah

• Barakah area is around 53 Kilometers away from the Al-

Ruwais, ENEC had the final approval from FANR at July 2012

• The following criteria allowed ENEC to rate the potential sites

in among the following ways:

Seismic history

Distance from large population centers

Proximity to large supplies of water

Proximity to the existing electrical power grid

Proximity to infrastructure – roads, pipelines, etc.

Favorable conditions for security, construction and evacuation

routes

Environmental conditions that would not be impacted

16

The APR1400

• Based on proven technology from the US - Westinghouse

• “Reference Plant” in Shin Kori under construction

• South Korea has continually upgraded the reactor design

• South Korean operating record is among the world’s best

17

Public Communications Program

• ENEC is committed to communicating transparently regularly with UAE

residents, employees, government agencies and the international

community regarding the UAE Civil Nuclear Energy Program plans and

activities

• The “ENEC Forums” provide an opportunity for residents to learn about the

program and ask any questions they have about nuclear energy or ENEC’s

plans

• Ten events have been held since 2010, attracting more than 5,000 people

18

Human Capacity Development

Energy Scholarship Programs

• The scholarship program provides UAE nationals with a

full scholarship to enroll in some of the finest universities

and pursue a Bachelor or Masters in nuclear, mechanical

or electrical engineering.

• Once the studies are complete, the selected UAE

national scholars will be provided with premier career

opportunities in the UAE’s growing nuclear energy

industry.

20

Project Time Line

21

Barakah Nuclear Power Plant

Barakah Nuclear Power Plant

Barakah Nuclear Power Plant

Barakah Nuclear Power Plant

Barakah Nuclear Power Plant

Barakah Nuclear Power Plant

Barakah Nuclear Power Plant

Barakah Nuclear Power Plant

Barakah Nuclear Power Plant

Barakah Nuclear Power Plant

Barakah Nuclear Power Plant

Barakah Nuclear Power Plant

Barakah Nuclear Power Plant

Barakah Nuclear Power Plant

Barakah Nuclear Power Plant

37

The Visit of H.H Sheikh Mohammed bin Zayed

Emirates Nuclear Energy Corporation

Update on UAE Industrial Development

• The Industrial Development Team, Strategy

• Industrial Development Focus

• HSJV contract award split

• Kepco and Doosan contract award split

Starting Point

• Short timeframe between decision to proceed and mobilising prime contract

• ENEC & FANR formation Dec 2009

• Prime Contract awarded Dec 2009

• IDT team onboard Dec 2009

• Decision to go for turn-key Prime Contract

• No localisation obligation written in to the prime Contract

Industrial Development Team Strategy

• Identify primary value chain target areas • Prime Contract manufacturing – focus on UAE industrial manufacturing to support build programme • Prime Contract construction – focus on UAE industrial construction to support build programme • Operation & Maintenance – focus on identification of UAE companies that can support ENEC in O&M • Government Support – identification of government aid & development of industrial training

• Identify Prime Contract opportunities that UAE companies can get involved with today

• Use our knowledge of UAE industry and work with ENEC to shape the O&M strategy to

maximise UAE content in operational phase

• Identify and facilitate State aid to assist UAE and international companies to set up nuclear support industries in the UAE

• Develop industrial training programmes so that UAE companies can continually improve and be self-sufficient

Localisation Focus for the Prime Contract

The prime contract is administered in the three subcontract areas ;- • Nuclear Steam Supply System (NSSS) by Kepco, • Power island by Doosan • General construction by HSJV. It was understood that local content in the areas of the NSSS and the power island would be low as these are high value, long lead time specialist items. This would be seen as ‘up-side potential’ Localisation would occur through HSJV for the general construction area ie “The accessible market” for localisation. Total value of UAE contracts to date = US$1,756,750,057 Note- Obtaining data from the prime contractor under a fixed price contract, in respect to distribution and value of sub-contracts, is proving difficult as it is seen as commercially sensitive by Kepco.

Award of Contracts by HSJV

Procurement;- total contracts let = 504 ($331m), total UAE contracts = 45 ($121m) thereby 37% by value Services;- total contracts let = 189 ($1,645m), total UAE contracts = 87 ($374m) thereby 23% by value Combined;- Total HSJV contracts $1,976m, total UAE contracts $495m thereby 25% by value of “accessible market”

The only Safety Related Items provided by UAE companies are the Q Class Re-enforcing Bars from Emirate Steel and the Q Class Cement (OPC) from National Cement. Emirates Cement is qualified as a Q Class supplier but has not yet supplied. Total Q-Class cement provided equals $52m

551

137

2 1 2

Split of HSJV Contracts by No of Contracts

korea

UAE

USA

China

Other

$1 473 479

$495 496

$4 $364 $6 881

Split of HSJV Contracts by value $'000

korea

UAE

USA

China

Other

Award of Contracts by KEPCO

Value of the UAE contracts placed directly by KEPCO are;- - $270m (up from $209m) National Marine Dredging - $50m (up from $39m) DUCAB - $6.1 TMI

77

3

8

2

87

Split of KEPCO contract (units 3&4) by No of Contracts

korea

UAE

USA

Euro

Other

136

3

21

3 19

Split of KEPCO contract (units 1&2) by No of Contracts

korea

UAE

USA

Euro

Other

For commercial reasons values of KEPCO awarded sub-contracts are not available in order give full breakdown in $ terms

There have been no direct sub-contracts placed by Doosan to UAE companies

UAE participation in Prime Contract

Highlight of specific UAE successes include;- - Re-bar - Emirates Steel ($161m) - Aggregate - Western Bainoona Group ($62m) - Cement & GGBS - National Cement, Emirates Cement ( $209m) - CWIS structure – Hilalco ($72m) - Silica Fume - Daze General trading ($6m) - CW pipe - Lima Heavy Industrial ($21m) - Fire hose – Naffco - Grounding cable - Power Plus Cable - M&E works – Master EJM ($33m) - Cable trays – TMI ($6m) - Descon – Switchgear and field erection ($18m)

- Power Cable - Dubai Cable Company (DUCAB) ($50m) - CCTV - MAB International ($2m) -11KV transformers - Linderberg Emirates ($5m) - LV lighting - Al Terhab Elect ($3m) - 11kV substation & mech works – Master’s Electromechnic ($33m) - Cranes - Crane Industrial Services ($10m) - Earthworks - Al Raeel ($6m) - Site grading - Bin Asheer, Actco, Bin Jarra, Al Raeel, Al Harmous (28m) - Village 1& 2 pre-cast – Tower Technology ($54m) AD Pre-cast Co. - Breakwater and dredging – National Marine Dredging Co. ($270m) Work continues to promote further UAE content;-

- Hands on coaching on quality assurance processes, commercial negotiations etc. for companies such as

Tawazun, Emirates Steel, Carboline, Oasis, tank fabricators etc. - French trade delegations to promote the value for French companies to invest and partner with UAE companies - Participating in trade shows such as ADIPEC to raise industry profile and opportunities - Working with HSJV directly to identify up coming tender opportunities for UAE companies - Identification of other trading partners for UAE based firms - Liaison with Abu Dhabi Chamber of Commerce to identify aid for industrialist wanting to get involved - Identification of training needs for UAE based industries