Final sale of CANDU-6 to China announced

Prime Minister Jean Chrétien today witnessed in Shanghai the signing by Atomic Energy Canada Limited (AECL) and the China National Nuclear Corporation of the final contract for the landmark sale of two CANDU-6 reactors to China. The reactors will be located in Qinshan, near Shanghai.

"This sale attests to Canada's proven leadership in the nuclear technology field, and our international reputation for safety and efficiency is second to none," stated the Prime Minister. "The reactors will enable China to meet its energy needs and Canada to showcase its high-technology capabilities while creating employment and opportunities at home."

The contract to build two CANDU-6 700-megawatt reactors arose from the 1994 Team Canada visit to China. Valued at $4 billion with a Canadian content of $1.5 billion, the contract is expected to generate an estimated 27,000 direct and indirect person-years of employment in Canada over the six-year construction period.

"It is Canada's hope that this contract will mark the beginning of a long-term commercial relationship between Canada and China in the peaceful and safe use of nuclear energy," the Prime Minister said.

The CANDU-6 reactor is a proven, safe, efficient and environmentally sound method of producing electricity.

The Export Development Corporation will provide financing for the Canadian component of the sale. The total project will involve partners from Japan, the United States and the Republic of Korea, and will be co-financed by the national export credit agencies of the other partner countries. The $1.5 billion Canadian component of the project will be used to source goods and services within Canada.

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