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Independent panel assesses Ukraine's energy needs
An independent panel of experts has been appointed by the European Bank for Reconstruction and Development (EBRD) and the European Commission to assess whether completion of two 1,000 MW nuclear reactors, Khmelnitsky 2 and Rivne 4, is necessary to meet Ukraine's demand for cheap power after closure of Chernobyl's remaining nuclear reactors by the year 2000. The panel, under the Chairmanship of Professor John Surrey of Sussex University, is expected to complete its assessment later this year.
"The panel will undertake its role in an entirely independent manner," stated Jacques de Larosière, President of the EBRD. "It will assess Ukraine's current and future energy needs and explore possible energy-saving measures as well as power generation options."
The panel, financed with technical assistance funds from EC-Tacis and USAID, is made up of six members chosen by Professor Surrey on the basis of their internationally acknowledged expertise in one or more of the relevant fields required for the assessment. In accepting the position of chairman, Professor Surrey said: "Members of the panel understand the importance of the independence and professional integrity of their assessment, while keeping the process open and transparent."
The purpose of the analysis is to ensure that Ukraine has the least cost power to meet its future needs, taking into account, among other things, opportunities for energy conservation. The analysis will help determine whether completing the two reactors to internationally recognised safety standards is economically justified. This justification is one of the EBRD's requirements in order for the Bank to consider financing the proposed project.
Following the signing of a Memorandum of Understanding (MOU) on the closure of Chernobyl's nuclear reactors between the Government of Ukraine and the Group of Seven in December 1995, the EBRD was asked by the G-7 to consider providing loans together with the European Union (Euratom loans) to finance completion of these reactors. The MOU called for the preparation of "loan-financed projects based upon least-cost planning principles" for the two reactors.
Provided that the panel receives the necessary technical information when required, it is expected to submit a report to the EBRD and the European Commission by 29 November 1996, and its conclusions will be made public soon thereafter.
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