Funding and Financing

Development of appropriate infrastructure to support introduction of nuclear power in the country requires funding from Government sources. Items that are the fiscal responsibility of the government include ensuring necessary resources for nuclear power infrastructure development, legislative and regulatory framework development as well as regulation. Financing for the nuclear power plant and associated facilities will be the fiscal responsibility of the owner/operator (whether it will be the Government or a private utility).

The funding and financing requirements for the nuclear power programme, including the nuclear power plant, are large. Depending on factors that include plant size, construction time, financing terms and interest rates, the initial investment cost of a 600-megawatt plant would be in the range of US$ 2.91 billion (at a specific cost of US$ 4,866 per kilowatt) and that of a 1000-megawatt plant would be in the range of US$ 4.25 billion (at a specific cost of US$ 4,249 per kilowatt). Siting, localization rate and fluctuations in foreign exchange rates also influence the cost of the plant and therefore further studies will be conducted so as to come up with a revised estimate that reflects the impacts of all the factors.

Multi-source financing, where a complete financial package is put together covering the entire cost of the project, is the conventional approach to obtaining finance for nuclear power projects. The first source will be the investor/owner/operator. Its own resources will constitute the basis of the financing package. Financing sources available include the Government, commercial financial institutions, equity investors, export credit agencies and multilateral financial institutions.