Napocor, Kepco deal may reopen Morong plant

Paul Anthony A. Isla, Business Mirror

Posted at Dec 24 2008 08:17 AM | Updated as of Dec 24 2008 04:17 PM

Government-run National Power Corp. (Napocor) said it recently signed a memorandum of understanding (MOU) with the Korea Electric Power Corp. (Kepco) to conduct a feasibility study for the possible reopening of the Philippine Nuclear Power Plant (PNPP) in Morong, Bataan.

In a statement, Napocor said the MOU paves the way for a cooperation project with Kepco.

The company said the nuclear reactor found in the PNPP has a “twin sister” in South Korea—the 650-megawatt (MW) Kori 2, which was commissioned in 1983 and has been operating since 1983.

The MOU will have a three-year period and will enhance the co-operation and exchange of information between Napocor and Kepco in the field of nuclear power generation, among others. This, in an effort to “promote bilateral cooperation in the fields of nuclear power plant operation, maintenance and rehabilitation through the exchange of data and experience, visits and joint work.”

Napocor added that it targets to make both companies benefit by “sharing invaluable experience and knowledge to be gained from such cooperation.”

This cooperation, according to the MOU, will cover the exchange of data and/or information; and activities related to determine the feasibility of the possible rehabilitation of the BNPP.

It also will cover the exchange of visits by experts, engineers and technicians in nuclear power generation; and cooperation in nuclear power plant rehabilitation, operation and maintenance and other related business fields.

Napocor said the MOU shall also promote conduct of various studies, such as those for preparation, planning and implementation of the cooperation project; site survey for the project, subject to the safety and security regulations of Napocor; nuclear legislation, regulation and administration; studies on environmental impact of the project; human resources development related to the project.

Napocor cleared that the MOU, however, will not create any legally binding obligations on Napocor and Kepco, except for Article 7, which is the Confidentiality clause.

“It is also expressly understood that the signing of the MOU does not give Kepco any preferential right to future projects or plans that National Power may undertake on the BNPP,” iosaid Napocor adding that it is clearly understood between both parties that nothing in the MOU shall be construed as a commitment by Napocor to Kepco to rehabilitate the BNPP, and that the MOU is nonexclusive.