Hitachi Ltd’s Horizon Nuclear Power unit has received an assurance from the British government that it will guarantee loans for the construction of two reactors in Wales, the Mainichi newspaper reported on Wednesday. British Prime Minister Theresa May met Hitachi Chairman Hiroaki Nakanishi last week in London and asked him to go ahead the project, conveying the government’s intention to fully guarantee the loans, the paper said, without citing a source. As the project costs have increased to meet new safety provisions, Hitachi is still pushing for the British government to take a stake in the project and guarantee electricity prices to ensure it is profitable, the Mainichi said. The cost of the Hitachi project in Wales has ballooned to 3 trillion yen ($27.4 billion) due to the tougher safety measures, the newspaper said.
Reuters 9th May 2018 read more »
[Machine Translation] The UK government presented to Hitachi about a debt guarantee for the full amount of borrowing necessary for the project, surrounding Hitachi’s nuclear power plant project to be planned in central UK. Until now, the Japanese government had a policy of guaranteeing debt from borrowing from Japanese banks. The British government, which had been asked to strengthen support from Hitachi, said it showed stronger involvement in finance. Based on this, Hitachi is expected to judge continuation of investment within the month. As a loan, 3 megabanks such as Mitsubishi UFJ Bank and other government-affiliated international cooperation banks are planning to participate from Japan, and it was planned that the Japan Trade Insurance, wholly owned by the government, will guarantee the loans of three lines. However, in late April, the British government showed Hitachi’s intention to guarantee full debt of both Japanese and English bank loans. Prior to this, Hitachi reported that there is a possibility of withdrawing from business unless UK government’s adequate support is obtained, the UK side seems to have presented as part of the support measures. If the loan is burned down due to an accident or the like due to the guarantee of debt, there is a possibility that the British people will eventually bear a burden. Although the burden of Hitachi is not immediately reduced compared with the case where the Japanese government guarantees the debt, the British government owes the risk of the failure of the project, so that the meaning that the British government can continue to support in the future can be expected is there.
Mainichi 9th May 2018 read more »