Unfair Gaps🇦🇪 UAE

Nuclear Electric Power Generation Business Guide

2Documented Cases
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All 2 Documented Cases

عدم إنشاء صندوق الإيقاف (Non-Establishment of Decommissioning Trust Fund)

Unquantified long-term liability exposure. Estimated range: AED 15-25 billion (based on operator-based model in comparable markets; Barakah's 4-unit capacity ~5,600 MWe suggests decommissioning costs at USD 750-1,250/kWe = AED 2.75-4.6B per unit). Regulatory penalties for non-compliance with FANR orders: typically AED 50,000-500,000 per finding; potential license suspension or operational restrictions.

The Barakah nuclear facility (Units 1-4) lacks an operationalized decommissioning trust fund despite IAEA Safeguards obligations and international best practices. Sources confirm the fund 'has yet to be established' despite Units 1-3 being operational. This creates a structural compliance gap: operators cannot demonstrate sufficient segregated assets backing their decommissioning liabilities, violating the hybrid financing model requirements.

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عدم توثيق تقييمات الالتزام المالي (Undocumented Financial Adequacy Assessments)

Estimated audit remediation: AED 500,000-2,000,000 per operator per multi-year retroactive assessment cycle. Funding gap risk: if fund is capitalized at <50% of actuarial liability (common in emergent nuclear programs), estimated shortfall at Barakah = AED 7.5-12.5B requiring emergency government rescue or operational curtailment.

FANR's licensing framework for Barakah Units 1-4 is silent on published decommissioning fund actuarial studies, asset allocation policies, or coverage ratio monitoring. Unlike UK (10-15% funding ratios disclosed), France (operator-financed funds audited annually), or US (NRC oversee trust valuations quarterly), UAE has no visible financial adequacy framework. This creates decision blindness for capital planning and creates scope for under-provisioning.

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