It is significant for the Japanese government and businesses to take part in foreign countries’ projects to construct new nuclear power plants. The feasibility and risks of these projects should be scrutinized through the cooperation of the public and private sectors. Hitachi, Ltd. and the British government will enter into full-scale negotiations on the construction of two nuclear reactors in Britain. Hitachi said it will make a final decision next year on whether to undertake the project. The project will cost more than ¥3 trillion, over ¥2 trillion of which will be financed by the British side. The remaining ¥900 billion will be funded by entities including Hitachi, Japanese government-affiliated financial institutions and the British government. In the wake of the disaster at the Fukushima No. 1 nuclear power plant, nuclear safety costs have been increasing globally. Due to its overly optimistic assessment of nuclear power plant construction projects in the United States, Toshiba Corp. eventually was forced to withdraw from the projects after suffering huge losses. Hitachi must not make the same mistake. The biggest worry is that the project costs will surge significantly if construction becomes prolonged. To prepare for such a possibility, it is essential for the Japanese and British sides to work out details on how to share any subsequent financial burden.
Japan News 23rd June 2018 read more »