How Egypt's Matrouh community will benefit from El Dabaa Nuclear power plant construction: Hungarian experience

Cairo - Constructing an NPP is a significant contribution to the development of Egyptian region. Zsolt Harfas, engineer at Paks NPP (Hungary) and member of the board of the Hungarian Electrotechnical Association, assesses the impact of nuclear power plants on the development of the Paks region, which has been successfully producing electricity for more than 36 years.

Today, on August 24, Matrouh governorate is celebrating the National Day, the greatest holiday established in the memory of the battle at Vadi Madjid dating back to 1915. This event marked the history of the Western Sahara and laid the basis for the economic and social development of Egypt as an independent state.

More than 100 years later, the country continues to be in the constant search of the ways to ensure stable and long-term economic development and better life standards for its citizens. In 2017, Egypt’s Parliament passed a long-awaited Investment Law to streamline doing business in Egypt. To get the maximum benefit from the new law for the region, in August 2017, Matrouh Governor Alaa Abu Zeid, signed contracts of eight investment projects to be implemented in the governorate in the fields of services, industry and tourism, at a total cost of EGP 2.2 billion[1]. But the biggest project called to boost the economic growth of the region is El Dabaa Nuclear Power Plant, the first NPP planned for Egypt. The plant will have four VVER-1200 reactors with a total capacity of 4800 Mega Watts. 

The growing need for energy is not the only motivation behind Egypt’s interest in a nuclear power program. Former IAEA Chief Inspector Dr. Ibrahim El Osery lists the benefits that Egypt’s first nuclear power plant will bring to the country: ‘The [El Dabaa] nuclear power project will help local industries as well as encouraging tourism, creating new jobs and reducing unemployment, and contribute to a cleaner environment, – and that is only the tip of the iceberg”[2].

Yet, the advantages of an NPP construction are the most tangible at the local level. While Egypt is only in the beginning of the long way to becoming a nuclear state, Hungary is operating its only commercial NPP located in the city of Paks (100 km south of Budapest) for more than three decades now and local residents can certify all the benefits which Paks NPP has brought and continues to bring to the region.

“Currently the NPP is the biggest employer in the region. Considering more than 2,500 employees and suppliers of the company as well as members of their families, the number of people for whom the NPP provides means for living amounts to tens of thousands. – says Zsolt Harfas, engineer at Paks NPP and member of the board of the Hungarian Electrotechnical Association. - At this moment, the NPP is one of the most demanded employers on Hungarian labor market”.

During the construction of Paks-I NPP, population of the city had increased from 13,000 to 21,000 people in the space of few years. In a certain moment, more than 10,000 people were working on the NPP construction site. Meanwhile, the city has developed and the living standards of the population significantly improved.

On 30 March 2009, the Hungarian Parliament granted the license to begin the preparation activities for the two new NPP units. The Paks-II NPP will be equipped with two new Russian-built VVER-1200 reactors, which will have net and gross capacities of 1,114MW and 1,200MW respectively[3].

Over the years, the NPP is paying the local tax in an amount of billions of forints. This amount will continue to grow when the construction of two new blocks begins. The money is spent on the development of the city infrastructure and improvement of the urban environment. NPP provides to the population a significant support in the field of healthcare, education, culture and sports. Through its social fund “Energy of Future” it has already invested in support of the power structures in the respective localities, their institutions and other business organizations.

“The hope of the local population, especially of the citizens of Paks, on the NPP long-term operation in full force is unwavering. - continues Zsolt Harfas. – That’s why when in 2009 the Hungarian Parliament took the overriding decision on the construction of the new blocks, the news was greeted with joy”.

While constructing the two new blocks equipped with VVER-1200 reactors, previous positive socio-economic effects will continue to appear. Paks II is the biggest industrial investment of the century in Hungary, that’s why, in accordance to the Russian-Hungarian intergovernmental agreement, the main goal is that Hungarian companies can take part in the project to the maximum extent possible, up to the level of 40%. In figures that means that Hungarian companies can receive up to 5 billion euros from total investment expenditures of 12,5 billion euro (the equivalent of 5% of Hungarian GDP). The project also represents an employment opportunity on a large scale. According to preliminary calculations, about 7-8 thousand people will be working on the site. Majority of these men shall be accommodated and taken care of. This, in its turn, will generate considerable development in the service sector of the city. Paks NPP continues to be the biggest employer in the region and the most generous investor in the development of local infrastructure. It also contributes into the development of education as the NPP construction and operation require highly qualified workforce.

“I am convinced that, like here in Paks, El Dabaa NPP will be equipped with 3+ generation VVER-1200 reactors recognized as the safest in the world. It’s a guarantee that during more than 60 years our Egyptian peers will be enjoying sustainable energy supply at affordable rates, – resumes Hungarian nuclear specialist. - Besides, it is a wonderful business opportunity for local companies and local specialists who will take part in the NPP construction and further exploitation. In the end, I’m pretty sure that El Dabaa NPP will benefit to all Egyptian population”.

About Rosatom State Atomic Energy Corporation

Rosatom State Atomic Energy Corporation is the world leader in the production of safe and clean energy, and it adheres to the principle of social responsibility and the need for preserving natural resources. Rosatom comprises 350 companies and research institutions in the nuclear industry. With over 70 years of experience in the nuclear sector, Rosatom offers integrated services in the nuclear industry, from uranium enrichment to building nuclear power plants internationally, while giving priority to improving product quality, introducing innovative technologies as well as environmental management. Rosatom is actively implementing projects in the field of applied research and innovation, and annually invests 4.5% of its income into research projects. Russian atomic technologies have been used in the construction of 120 research reactors around the world.

For further information, please contact:

Engy Emad

Media Relations Manager

TRACCS Egypt

Mobile: 010 0900 2207

Email: engy.emad@traccs.net

[1] Source: https://www.egypttoday.com/Article/3/19469/Matrouh-gov-signs-contracts-to-implement-8-investment-projects

[2] Source: https://www.albawaba.com/business/pr/experts-el-dabaa-npp-what%E2%80%99s-store-egypt%E2%80%99s-economy-1094016

[3] Source: https://www.power-technology.com/projects/paks-ii-nuclear-power-plant/

© Press Release 2018