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Canadians to Ante Up for Nuclear?
Aug. 9th, 2008 12:03 pmAlmost funny. It's like an arms race.
AECL, SNC Ask for Billions for Nuke Plan - Globe and Mail - 07 Aug 08
"Atomic Energy of Canada Ltd. and SNC-Lavalin Group Inc. are asking the government for billions in financing for their bid to build two nuclear reactors in Ontario, and the government has sent initial signals that some backing will be available.
The companies, who say government support is the only way their bid can compete with global players, are also asking Ottawa to help cover any potential cost overruns, which critics say could mount to further billions of dollars. In a letter to Natural Resources Minister Gary Lunn, SNC-Lavalin Nuclear president Patrick Lamarre said the Canadian consortium is at a major disadvantage to French and American competitors who have access to their own government-backed financing."
"Critics also argue that the Ontario Power Authority is seriously underestimating the cost of nuclear power, and that nuclear vendors will lowball their bids and then have their government backers pick up the tab for overruns. The OPA estimates that Ontario could get two new 1,100-megawatt reactors for $6-billion.
But Moody's Investors Service - a credit-rating agency - recently estimated that it would cost $7.5-billion (U.S.) to build a new 1,000-megawatt plant in the United States. And in a submission to the Ontario Energy Board, an industry group known at the Alliance of Energy Consumers slammed the OPA estimate as 'absurd' and said major cost overruns are a virtual certainly."
AECL, SNC Ask for Billions for Nuke Plan - Globe and Mail - 07 Aug 08
"Atomic Energy of Canada Ltd. and SNC-Lavalin Group Inc. are asking the government for billions in financing for their bid to build two nuclear reactors in Ontario, and the government has sent initial signals that some backing will be available.
The companies, who say government support is the only way their bid can compete with global players, are also asking Ottawa to help cover any potential cost overruns, which critics say could mount to further billions of dollars. In a letter to Natural Resources Minister Gary Lunn, SNC-Lavalin Nuclear president Patrick Lamarre said the Canadian consortium is at a major disadvantage to French and American competitors who have access to their own government-backed financing."
"Critics also argue that the Ontario Power Authority is seriously underestimating the cost of nuclear power, and that nuclear vendors will lowball their bids and then have their government backers pick up the tab for overruns. The OPA estimates that Ontario could get two new 1,100-megawatt reactors for $6-billion.
But Moody's Investors Service - a credit-rating agency - recently estimated that it would cost $7.5-billion (U.S.) to build a new 1,000-megawatt plant in the United States. And in a submission to the Ontario Energy Board, an industry group known at the Alliance of Energy Consumers slammed the OPA estimate as 'absurd' and said major cost overruns are a virtual certainly."
