The Emirates Nuclear Energy Corporation (ENEC) announced today that it has filed two license applications and an environmental assessment related to preliminary work at ENEC’s preferred site for the United Arab Emirates’ first nuclear power plants.

The preferred site is located at Braka in the Western Region of the Emirate of Abu Dhabi on the Arabian Gulf, approximately 53 kilometers west-southwest of the city of Ruwais. ENEC emphasized that the final approval of the proposed site location for the plants rests with the UAE Federal Authority for Nuclear Regulation (FANR), which will determine as part of its comprehensive licensing process whether or not the site is an appropriate location for the power plants, and the Environmental Agency – Abu Dhabi. (See map, below.)

The documents filed with FANR are:

• The Request for Site Preparation License, UAE Nuclear Power Plants Units 1, 2, 3 & 4. This document requests a Site Preparation License from FANR that would allow ENEC to conduct site preparation activities that are not related to nuclear safety.

• The Request for a Limited Construction License to Manufacture and Assemble Nuclear Safety Related Equipment, UAE Nuclear Power Plants Units 1, 2, 3, and 4. This application seeks permission for ENEC to proceed with the manufacture of various parts of the nuclear power plants, including the reactor pressure vessel, steam generators, pressurizers, coolant pumps, and other components. The manufacture of these components would be the responsibility of Doosan Heavy Industries & Construction, in Korea, part of the Korea Electric Power Company-led consortium that is ENEC’s Prime Contractor. Pending regulatory approval, ENEC would anticipate starting some of the manufacturing later this year.

Another document, the Strategic Environmental Assessment (SEA) has been filed with the Environmental Agency – Abu Dhabi (EAD). The SEA is a Master Plan level document that addresses the environmental impacts of the project, and includes information on mitigation measures and monitoring programs. The study also addresses the construction activities on site. All three documents are available at ENEC’s web site, enec.gov.ae.

“These filings mark important milestones for ENEC, and we now await review by the Federal Authority for Nuclear Regulation and the Environmental Agency,” said Mohamed Al Hammadi, ENEC’s Chief Executive Officer. “The selection of our preferred site is the result of an evaluation process that meets or exceeds international standards. The evaluation has provided an extensive amount of information which ENEC has used in its determination of where in the UAE we can locate nuclear the power plants in the safest manner.”

Mr. Al Hammadi also announced that ENEC will hold a public meeting with area residents in the coming weeks to discuss with area residents the site selection process, development plans and the economic and job opportunities that will be created if the plants are built at Braka.

Site Evaluation Process

The selection of a preferred site is based on information developed during a comprehensive Site Evaluation Process designed to ensure that nuclear power plants in the UAE are built in locations that conform to internationally accepted standards for safe operations.

ENEC’s site evaluation process began in mid-2008 and was carried out in accordance with existing UAE laws and regulations prior to the official establishment of FANR. The process was led by recognized experts and academics in the field, and involved UAE and international personnel. The work was based on guidance from the Federal Authority for Nuclear Regulation, the Electric Power Research Institute, the United States Nuclear Regulatory Commission, and the International Atomic Energy Agency.

As part of the process, the Site Selection team reviewed data on the entire landmass of the United Arab Emirates and identified potential locations for nuclear power plants based on a set of criteria. Combined, those criteria allowed ENEC to rate the potential sites in among the following ways:

• Seismic history

• Distance from large population centers.

• Proximity to large supplies of water.

• Proximity to the existing electrical power grid, which will make it easier to connect the power plants to the electrical system.

• Proximity to infrastructure – roads, pipelines, etc.

• Favorable conditions for security, construction, and evacuation routes.

• Environmental conditions that either would not be impacted, or which could be addressed with remediation programs.

ENEC evaluated 10 sites across the United Arab Emirates in detail, and then narrowed that group to a set of preferred and alternate sites that were subject to further evaluation. Each of those sites was found to be suitable for construction and operation of nuclear power plants. The site near Ruwais was chosen on the basis of environmental, technical, and business considerations.

The site, including area set aside for temporary construction space, covers approximately 13 square kilometers.

Site Preparation Activities

The Site Preparation License, if granted by FANR, would allow ENEC to conduct work related to construction of features of the overall facility that are not part of the nuclear power plants. Such work would include:

• Construction of jetty and breakwaters for water intake structures not related to nuclear safety

• Installation of preparations for permanent foundations

• Development of security systems, including fences, gates and guard structures

• Development of permanent site roads and parking

• Dredging, placement of backfill

• Construction and development of telecommunications facilities

• Construction of an administration building

The work proposed to be done under the Site Preparation License would be done with the understanding that the ultimate suitability of the site will be determined by FANR as part of a Construction License Application process, which is expected to begin with a filing by ENEC later in 2010. Residents within the site boundary area who have been granted temporary use of land by the government will be informed that they will need to vacate the area.

ENEC has requested that FANR issue the Site Preparation License on or before July 5, 2010, to allow work to proceed as scheduled for the UAE program to achieve commercial operation of the first unit in 2017.

Project Schedule Update

As part of its filings with FANR, ENEC also provide the following tentative schedule for regulatory filings, construction activity and operations. All dates are subject to necessary regulatory approvals.

Site Selection License for Units 1, 2, 3 and 4 Complete Submit Non-Nuclear Environmental Impact Assessment (EIA) to EAD for Units 1, 2, 3 and 4 Early 2010

Submit Construction License Application (CLA) to FANR for Units 1 and 2 Late 2010

Submit Nuclear Environmental Impact Assessment (EIA) to EAD for Units 1, 2, 3 and 4 Late 2010

Pour first Unit 1 power block concrete Late 2012 Submit Units 1 and 2 Operating License Application (OLA) to FANR Mid-Late 2015

Unit 1 Commercial Operations 2017

Pour first Unit 2 power block concrete Late 2013

Unit 2 Commercial Operations 2018

Submit CLA for Units 3 and 4 Late 2012

Submit OLA for Units 3 and 4 Mid-Late 2017

Unit 3 Commercial Operations 2019

Unit 4 Commercial Operations 2020

Strategic Environmental Assessment (SEA)

ENEC’s filing of the SEA with EAD is part of the process that will eventually lead to a request for a Construction Environmental Permit for the non-reactor components of the project, which is necessary before any construction can begin at the preferred site. The SEA, is part of a three-volume, 3,800-plus page document, analyzes the potential environmental consequences of construction and operations, as well as identifying recommended mitigations and monitoring programs.

The document includes reviews of:

• Seawater and ground water

• Land use in the area

• Marine and land-based plants and wildlife

• Socioeconomic conditions

• Geology

• Air Quality

• Noise

Under EAD guidelines the SEA also details monitoring programs that will track compliance with mitigation requirements and environmental protection standards. ENEC has committed to ensure that its activities during the projected site preparation and construction will be done in a way that minimizes impact to the environment to the extent possible as part of the construction of the power plants.

ENEC will integrate environmental stewardship commitments into a comprehensive Environmental Management System (EMS). That system will implement an environmental awareness program to undertake the training of Site personnel, which includes training on compliance with regulations and requirements.

In the filing, ENEC also commits to work closely with the Abu Dhabi Authority for Culture and Heritage (ADACH) to preserve the stone remnants of an ancient port facility used in the region’s pearling industry. The area will be fenced off to prevent any intrusions during construction activities, and steps will be taken to ensure that any further historical or cultural resources identified on site will be similarly cared for.

Program Background: The UAE Policy on Nuclear Energy The UAE’s comprehensive approach to nuclear energy is detailed in the Policy of the United Arab Emirates on the Evaluation and Potential Development of Peaceful Nuclear Energy, a document released in April 2008. One of the main pillars of the policy is the decision to develop the program with safety and non-proliferation as its foundation, and to forgo domestic enrichment and reprocessing of nuclear fuel, the two parts of the nuclear fuel cycle that can most readily be used for non-peaceful purposes. This policy establishes a new model through which non-nuclear states may explore and potentially deploy nuclear energy with the full support and confidence of the international community. The UAE model has been called the “gold standard” for developing a nuclear energy program.