The end of KEDO and “nuclear” energy

From the Donga:

South Korea has agreed to pay the termination costs for a light-water reactor project in Sinpo, North Korea that was canceled earlier last month.

The total reactor termination costs are estimated to be roughly $200 to $300 million. Most of the cost is damages with penalties and money that needs to be given to construction companies and component suppliers. The costs could snowball even more if additional costs for moving equipment and construction vehicles out of the North are taken into account. The additional costs could amount to as much as $4.7 million

North Korea currently refuses to return the equipment, however. The North is also likely to demand compensation for ending the light-water reactor project. If that is the case, who else can North Korea turn to for compensation but South Korea?

Should the project be restarted, South Korea will end up covering most of the construction costs. In short, they will end up paying for the termination costs first, and then construction costs if the project is restarted.

Despite all this the South Koreans still have to provide two million kilowatts of power to the North. Providing power is now a separate issue from light-water construction due to the government’s hasty offer.


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