ICBC and other Chinese banks fund Atucha 3 and Atucha 4 Nuclear Plant Project in Argentina (Linked to Record ID#108038)

ICBC and other Chinese banks fund Atucha 3 and Atucha 4 Nuclear Plant Project in Argentina On July 12, 2014, China National Nuclear Corporation (CNNC) announced that it had signed two deals with Argentina's Nucleoeléctrica Argentina SA (NASA) to be a major contributor to the construction of Atucha 3, the country's fourth nuclear power plant.

Under the first deal, NASA and CNNC will cooperate on issues related to reactor pressure tubes, including engineering, fabrication, operation and maintenance. It also covers the manufacture and storage of nuclear fuel, licensing, life extension and technological advances. This agreement is aimed at both operating and future nuclear power plant projects.

The Atucha Nuclear Complex is located in Lima, Zárate, Buenos Aires Province, about 100 kilometres (62 mi) from Buenos Aires, on the right-hand shore of the Paraná de las Palmas River.

The second 2014 agreement, related to Atucha 4, the country's fifth nuclear power plant, calls for the transfer of Chinese technology to Argentina.

Under the accord, Argentina could act as a technology platform, supplying third countries with nuclear technology incorporating Chinese goods and services.

Some reports have stated that the financing deal is contingent upon Chinese companies being given priority in all aspects, including design, construction and fuel cycle.

A 2015 ICBC article referred to commercial contract for the fourth nuclear power station and the commercial framework contract for the fifth nuclear power station based on 'Hualong One' technology - Hualong One is China's self developed third-generation nuclear power technology.

In April 2017, at the Third China-Argentina Strategic Dialogue for Economic Cooperation and Coordination, both IV Nuclear Power Plant and V Nuclear Power Plant were listed as a single line item in the Priority Infrastructure Cooperation Project List, and the two parties agreed on a 'sign one contract, implement two reactors by phases' approach.

The IV Nuclear Power Plant was expected to start construction in 2017, and the V Nuclear Power Plant was expected to start construction in 2019.

According to Association of Metallurgical Industries of the Argentine Republic (ADIMRA), a loan agreement was finalized in May 2017.

The total costs for both IV Nuclear Power Plant and V Nuclear Power Plant would reportedly be $14 billion, and 85% of the cost would be financed by a consortium of Chinese banks (led by ICBC).

Also the interest rate would be 4.8%.

However, in May 2018, it was reported in the media that the agreement for both IV Nuclear Power Plant and V Nuclear Power Plant would be suspended.

It was also reported by some media outlets that while Atucha III would be suspended, Atucha IV would continue with exclusively Chinese technology for a 2022 completion date.

In November 2018, a Memorandum of Understanding was signed between Autoridad Regulatoria Nuclear (ARN) of the Republic of Argentina and the National Nuclear Safety Administration (NNSA) for the construction of a fourth NPP, as part of pre-licensing activity.

The fourth plant would be a HPR-1000 (Hualong I) designed by China National Nuclear Corporation (CNNC), with Fuqing unit 5 under construction in China taken as a reference design, and including design changes according to relevant updates of Argentine and IAEA Safety Standards. China National Nuclear Corporation (CNNC) will be the supplier.

Later in April of 2019, a resolution from the Argentina Chamber of Deputies of the Nation noted that both construction projects were postponed.

Though on April 15, 2019, after those resolutions were created, the Macri administration signed a letter of intent with China’s National Energy Administration to build the Atucha 3 nuclear power plant, so the status was put on pledge.

Because this is the most current resource and was published after the signing of the MOU, the transaction details reflect this account.

In November 2019, newly-elected Argentinian President Alberto Fernandez stated his desire to move forward with a contract to construct the power plant, but provided no other details.

On February 1, 2022, the Argentine Nuclear Power Company, China National Nuclear Corporation, China Zhongyuan, and China Zhongyuan Argentina Branch of China National Nuclear Corporation formally signed the design, procurement and construction contract for Unit 3 of the Atucha Nuclear Power Plant.

According to the general contract agreement, China National Nuclear Corporation will build Atucha Unit 3 for Argentina in the "turnkey" mode through the general contracting method of the project. The "turn-key" model refers to the fact that a multinational company builds a project for the host country.

After the design and construction are completed, the project ownership and management rights are completely handed over to the other party in accordance with the contract, and the other party starts to operate.

It has been reported in the media that ICBC will cover 85% of the project costs, or $6,800,000,000, with the government of Argentina handling the other 15%, with an eight year grace period.

Once President Javier Millei came into the office, the new administration agreed to continue negotiations and essentially revived the stalled project. While Argentina request ICBC to fund 100% of the project, ICBC agreed in principle to fund 85%.

While the construction agreement was in effective and was extended to April 2025, work has been stalled pending negotiations with ICBC. The new arrangement is recorded in Record ID#108038.