Fourth Taiwan nuclear plant plant hits new snag

["Sandy Perle" <sandyfl@earthlink.net>]

Note: The rest of today's nuclear news related items will be 
distributed to my distribution list .. not Radsafe. I try to limit 
the news I post to no more than 2 articles a day...
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Fourth Taiwan nuclear plant plant hits new snag

TAIPEI, May 2 (Reuters) - Taiwan's controversial fourth nuclear power 
plant hit a new snag on Tuesday when the economics minister ordered 
the state power company to stop inviting tenders for its 
construction. 

The fate of the US$5.3 billion plant has been in the balance since 
Chen Shui-bian of the Democratic Progressive Party won presidential 
elections in March, ending more than five decades of Nationalist 
rule. 

Chen had pledged to scrap the project during campaigning. 

Economics Minister-designate Lin Hsin-yi told reporters that a 
decision on the project would be made within six months. 

"This is to avoid further losses if we decide not to go ahead with 
the plant," said Lin. 

The Legislative Yuan, or parliament, had approved a budget for 
construction of the plant, said Wang Ying-han, chief secretary of 
parliament's budget committee. 

The law required the permission of parliament to halt the execution 
of approved budgets, Wang said, adding that the economics ministry 
also needed the cabinet's approval to kill the project. 

Taiwan Power Co has completed 30 percent of the plant's 
superstructure. 

It has also awarded US$1.3 billion worth of contracts, including a 
$1.8 billion contract to U.S. General Electric Co <GE.N> for two 
nuclear reactors and related equipment in 1996. 

The same year, Japan's Mitsubishi Heavy Industries Ltd <7011.T> was 
chosen to supply turbine generators worth US$127.8 million. 

COMPENSATION FOR BREACHING CONTRACTS 

Taiwan Power officials said if the project was dropped, the company 
stood to lose all that had been spent and it must compensate 
suppliers for breaching contracts. 

Following more than a decade of disputes and environmental protests, 
the Atomic Energy Council issued permits for construction of the 
2,700-megawatt plant in March 1999 -- five years after parliament 
approved the budget. 

The first reactor was scheduled to enter service in July 2004 and the 
second in July 2005. 

Taiwan Power spokesman Lai Shih-chang said the state power company 
would follow the orders of the ministry. 

Chen's chief aide Chiou I-jen has said the reaction of international 
suppliers and contractors would be taken into account before any 
decision was taken to mothball the plant. 

Taiwan Power has argued the plant is needed to meet growing power 
demand. It says that without the facility, northern Taiwan would 
suffer a shortage of four million kilowatts of power per day during 
the peak season this summer. 

Taipower's three operating nuclear plants each have two generating 
units which produce about one quarter of Taipower's 21,900 megawatt 
output. 

To keep pace with economic growth, Nationalist officials have said 
the state utility's output must rise to 36,000 megawatts in 2000. 

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Sandy Perle					Tel:(714) 545-0100 / (800) 548-5100   				    	
Director, Technical				Extension 2306 				     	
ICN Worldwide Dosimetry Division		Fax:(714) 668-3149 	                   		    
ICN Biomedicals, Inc.				E-Mail: sandyfl@earthlink.net 				                           
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Costa Mesa, CA 92626                                      

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