Finally the electric company should play a key role

It is the time of the last adjustments for the French team in the tender nuclear giant in Abu Dhabi. The team was to be initially undertaken by Areva, GDF Suez and Total. But with the reluctance of the local authorities, to designate those who build on place a series of nuclear reactors, EDF has been called to the rescue. Finally, the electric company should play a key role. Yesterday, the Board of Directors of EDF has worked on a new scheme, which would give the first group a leader role, while providing a collaboration of equal to equal with the second. The idea is to establish a consortium in charge of control of work of the reactors, EDF and GDF Suez, the latter bringing its Board today, would each hold 45 percent and Total 10.

This scheme does not provide for investment on the part of the consortium. A priori, companies would be therefore paid for the provision of services. It would be the same balance in a consortium responsible for the operation for a specified period.

Tougher than expected competition

EDF has never considered this tender as strategic, despite the amounts involved - all of the contracts could exceed $ 40 billion. But following calls from the foot of the client, the electrician had agreed a technical assistance mission. The that's leader! The Elysee Palace, which is a priority, nuclear wants to put all the chances on the France for implementing tougher than expected competition. Korean Kepco has proven to be very aggressive, especially in terms of price, and the US-Japan joint venture General Electric Hitachi remains, also a serious contender.

Abu Dhabi sees a good look the rising strength of EDF. But it is also possible that the local electric company Enec asked the consortium to co-invest in the project. According to Per Lekander, UBS analyst, an investment would be bad news for shareholders of EDF. "New nuclear, wait six to ten years before touching of risk-taking", he notes. Other adjustments are envisaged in the French offer, which is expected to be delivered mid-December. Including the input of Vinci as head of civil engineering, support or replacement of the American Bechtel. AREVA would obviously remain in charge of the nuclear island and Alstom is preparing to provide the conventional island.

The calendar, he seems to be off. The outcome of the races was originally expected in September, and then at the end of the year. In fact, according to sources cited by the Middle East Business Intelligence, Enec should not sign the contract before March 2010. Some wonder even on any particular outcome before 2011. "The financial difficulties of Dubai are not decisive, but they are, says an expert." Abu Dhabi will want to know the depth of the hole to be filled before committing. "According to Leila Benali, Director Middle East Africa to Cera, the studies office specializing in energy, the signing of a contract is in any event as the beginning of the work. "Behind, the road will be still long."It evokes the staff training, but above all the geopolitical questions of enrichment or reprocessing, with filigree, the tensions created by Iran's nuclear program.