UAE Banks Take Over Financing of Barakah Nuclear Power Plant

The Barakah One Company, a joint venture between the Emirates Nuclear Energy Corporation (ENEC) and Korea Electric Power Corporation (KEPCO), has secured new financing for the Barakah Nuclear Energy Plant. This milestone deal signifies a shift towards domestic support for the UAE's flagship clean energy project.

Previously, the Export-Import Bank of Korea (KEXIM) provided loan facilities to support the construction and development of the Barakah plant. Barakah One Company has now refinanced the entirety of this outstanding balance through a competitive market process. The successful bids came from two leading Emirati banks, Abu Dhabi Commercial Bank (ADCB) and First Abu Dhabi Bank (FAB).

This shift in financing partners reflects the Barakah plant's progression towards full commercial operations. Three of the plant's four reactors are already generating clean electricity for the UAE's national grid. The fourth unit is currently undergoing operational readiness testing, and upon completion, will significantly boost the plant's capacity.

Officials from ENEC hailed the refinancing as a testament to the success of the Barakah project. "We are pleased to have secured this refinancing agreement with leading UAE banks," said Mohamed Ibrahim Al Hammadi, ENEC's Managing Director and CEO. "This signifies not only the project's financial viability but also its growing importance within the UAE's sustainable development strategy."

The Barakah plant is a critical component of the UAE's plan to achieve Net Zero emissions by 2050. By generating clean, carbon-free electricity, the plant helps to reduce the nation's reliance on fossil fuels and curb greenhouse gas emissions. Additionally, the project is expected to create a significant number of skilled jobs in the UAE's growing nuclear energy sector.

Beyond its domestic benefits, the Barakah plant also serves as a model for future nuclear energy projects around the world. The successful construction, commissioning, and now refinancing of the plant demonstrate the viability of nuclear power as a clean and reliable energy source.

The UAE has long positioned itself as a leader in the field of nuclear energy development. The Barakah plant, with its emphasis on safety, security, and non-proliferation, serves as a benchmark for responsible nuclear power programs globally. The recent refinancing deal underscores the UAE's commitment to this clean energy source and its potential to contribute to a more sustainable future.

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