BUSHEHR NUKE PLANT CONSTRUCTION: RUSSIA GOOD ON ITS WORD

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MOSCOW, July 9 (Marianna Belenkaya, RIA Novosti political analyst) - Russia has scheduled a Unit One physical start-up at the Bushehr nuclear plant for December 2005-as against a previous deadline of this year's end. The unit will offer its first electricity early in 2006, says Alexander Rumyantsev, Russian Nuclear Power Agency head.

The new schedule has been coordinated with the host country, he said to Novosti. The start-up was put off as Iran previously intended its own, if partial, equipment supplies to the plant. Market studies, however, proved that analogues of Russian design and manufacture reduced the costs by 20 per cent, so Russia needed a postponement to produce necessary technologies.

Nothing prevents compliance with the schedule any longer, and nuclear fuel has been stocked up. There is only one more thing to do-sign an agreement on spent fuel return to Russia. It may be signed any day, even tomorrow. The matter has been settled in principle, and only minor technicalities stay under debate-in particular, details of spent fuel certifying and transport, and prices Iran will pay Russia for storage and procession.

As for the prices, Mr. Rumyantsev hopes commercial agents will eventually come to terms, though the matter is now at a standstill. Average spent nuclear fuel prices are keeping within a $600-1,500 corridor a kilogram-a thousand dollars, most frequently.

There is still some time to settle all fuel return intricacies, said our interviewee. He expects the agreement will be signed as he visits Teheran, tentatively, late November or December's start. He will go to Iran, beyond doubt, as Bushehr construction needs his personal supervision.

As to whether Russia will take up Unit Two construction, no talks have started yet on the issue. Several years ago, Iran called all who wished to join its civil-oriented nuclear programme. It aims to generate an annual seven gigawatts within the next ten years, with another six units similar to the Bushehr Unit One. No one has answered the call for today-in-depth market studies are underway, despite all commercial benefits of the idea.

Mr. Rumyantsev confirmed reports of repeated Iranian proposals to Russia to take stock of prospects for its partnership in Unit Two construction. As Russia replied every time, it ought first to come closer to Unit One start-up. It will be wiser to do the job on schedule than disperse attention on tentative contracts.

Russia has every opportunity to start Unit Two construction, he stressed. The matter demands thorough consideration from political, technical and economic points on a bilateral expert arrangement.

The Siemens commenced Unit Two construction years ago. So, if Russia takes up the job, if will have to determine whether to complete the German efforts or start from scratch on a new site. If the latter option is preferred, prospecting will be necessary, which usually takes something like six months. "So you see, the matter demands quite some time," remarked Alexander Rumyantsev.

Be all that as it may, the issue pertains to Russo-Iranian relations. Iran is Party to the nuclear nonproliferation treaty, so there are no limitations on its nuclear plant construction. Even the USA, whose extreme apprehensions of Iranian progress in nuclear power industry are well known, is gradually coming to acknowledge that spent fuel return to Russia is sufficient guarantee.

Mr. Rumyantsev hopes the Iranian nuclear file will be sealed as the IAEA Board of Governors gathers in Vienna, autumn next.

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