ML20127C499

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Responds to Requesting Advice on Whether or Not Export-Import Bank Should Help Finance Exports of Equipment & Svcs for Upgrade & Operations of Philippine Nuclear Power Plant
ML20127C499
Person / Time
Issue date: 06/08/1992
From: Harold Denton
NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To: Schrobe R
EXPORT-IMPORT BANK OF UNITED STATES
Shared Package
ML20127C497 List:
References
NUDOCS 9209080045
Download: ML20127C499 (4)


Text

ENCLOSURE 1

  • /

UNITED STATES 4

.g NUCLEAR REGULATORY COMMISSION f

WASHINGTON, D. C 20555 s

s...../

June 8, 1992 Mr. Roy Schrobe Loan Officer Export-Import Bank of the United States Washington, D.C.

20571

Dear Mr. Schrobe:

This is in response to your letter of May 18, 1992 requesting advice on whether the U.S. Nuclear Regulatory Comission (NRC) perceives any reason why the Export / nport Bank should not help finance exports of egipment and services for the upgrade and operations of the Philippine nuclear power plant (PNPP-1).

The NRC license under which Westinghouse previously exported equipment for PNPP-1 is valid until 1998.

Therefore, the proposed plant completion work program, which includes additional NRC-controlled exports, can be done under the present license.

The U.S. Nuclear Regulatory Commission neither guarantees nor assures the safe l

construction and operation of any nuclear power plant outside of the United l

States.

Your enclosed Summary of Plant Completion Work Program states that PNPP-1 and Westinghouse have sttempted "to approximate to the greatest extent l

feasible the features incorporated in recently comissioned U.S. plants and based upon current U.S. NRC criteria."

In corroboration of thet statement, in April 1992 the Philippine Nuclear Research Institute (PNRI) c ntacted the NRC requesting applicable NRC licensing documents on the Seabrook Nuclear Power l

F. ant, which is, as agreed by Westinghouse and'the Government of the Philippines, the reference plant to be used in the upgrading and repair of PNPP-1. These documents were mailed to PNRI in May 1992.

As part of NRC's response to the April 1992 PNRI request, the NRC emphasized that "one of the key principles underlying the basic concepts for the regulation, management of safety, and the operation of nuclear installations is that governments shall establish legislative and statutory frameworks for the regulation of nuclear installations, that there be a clear separation of responsibilities between the regulatory body and the operating organization, and that the regulatory body be effectively independent from the organization or body charged with the promotion or utilization of nuclear energy."

International consensus has recently reenforced these principles.

It is vital to the safe construction and operation of PNPP-1 that PNRI "have adequate authority, competenc';, and resources to fulfill its assigned dutie:

For your information, the Regulatory / Safety Research Arrangement between the NRC and toe Philippine Atomic Energy Comission (now the PNRI), was last renewed for five years in 1985.

An expanded renewal proposal is currently being drafted, subject to updated information from the PNRI.

9209080045 920828 PDR COMMS NRCC l

CORRESPONDENCE PDR

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i-3 In making its determination to finance PNPP-1, the.NRC suggests Export-Import Bank consider whether_(a) the plant will be upgraded:to the present state-of-F the-art- (i.e., Seabrook) standards, (b)-.there will be adequate numbers of i

trained-operational-personnel, and (c) the regulatory body has sufficient legal and institutional autonomy to effectuate its mandate.

Please: feel' free to contact Dr.. Karen Henderson of my staff at 301/504-2337 for.information on the NRC-PNRI arrangement.

F Sincerely, l

Harold R. Denton, Director

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Office of International Programs

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ENCL.05URE 2 4-i 102n CoNoaMas 1

Rarour HOUSE OF REPRE*1ENTAM 102-mg 4

FOREIGN OPERATIONS, EXPORT FINANCING, AND

~

RELATED PROGRAMS APPROPRIATIONS BILL,1993 I

Juxa.1991 -Committed to the Committee of the Whole House on the State of the Union and ordervd to be printed i

1 Mr. Oary, from the Committee on Appropriations, i

l submitted the following i

REPORT l

(To accompany H.R. 5368]

i The Committee on Appropriations to whom was referred H.R.

5368,==Wg appropriations for foreign operations, export financ-ing, and related programs for the fiscal year ending September 30, 1993, and for other purposes, report the same to the House with an 4

amendment and with tse recommendation that the bill as amend-

}

ed be passed..

The amendment is a complete substitute for the text of the bill l

and appears in italic type in the reported bill.

mozzto an1 AND RzPORT As am som Summary of bill:

4 3

Summary Char * -

5 4

Changes in the World 6

f"knmitema Rannemesulatiana i

Items of specialintaesst:

9 Arms Sales and Militansstion in the Developing World--

10 European Base Rights Graduanon Policy 5

10 Faame in Africa 12 Population 13 Children's Issues 15-Environmental Priorities Country Issues 22 China 24 El Salvador 26 Guatemala 28 Indonesia and East Timor..

56 412 i

V i

108 P1HLIPPINE NUCLEAR FACIIJrY The Committee is aware of the electricity shortages in the Philip-i pines and their great need to develop ancity sources. The Commit-tee further is aware of the nuclear power pant whkh has previous-ly received Bank program support and of its long and controversial history.

Prior to entering into any agreement to provide dhwet loans, loan piarantees, or insurance for any purpose related to this plant, the Camirman of the Board of the Bank is to certify (lity will met and so report to the Committees on Appropriations) that such faci all safety, health and environmental requirementa, etandards, and regulations that would apply to a nimi1=v and currently operating facility located in the United States. The Committee beh, eves that this certification of meeting American standarh is nar====ry in order to ensure that the Umted States governa at is not implicat-ed or blamed for any future difHeulties related this facility.

v POIIr! CAL alsE INSURANCE CASE It has been brought to the attention of the Committee that the Bank has been slow in resolving a political risk insurance claim l

(No. 20899). When questioned concerning this case, the Bank has been reluctant to explain why they believe that what oeems to be an ex post facto taking by the Government of Venezuela is not cov-ered by their politica, nsk policy. In fact, the Bank has not an-l swered, to the satisfaction of the Committee questions concerning precisely what is and is not covered by their political risk insur-ance policies.

Due to this experience, and the potential high expense of litiga-tion to both the Rank and the claimant, the Committee recom-mends that the Bank submit this claim to arbitration by the Amer-ican Arbitration Association. If the Bank for some reason believes that arbitration is inappropriate for this case and if they subse-quently convince the President to so determine and if the Admini=-

tration reports that determination in writing to the Committee, the i

Committee will accept that judgment.

TmAnE Axo Duvur.oruxNT PaoonAM L

Fiscal year 1992 level-

$34.483.000 40,000,000 Fiscal year 1998 request-comminae recommendation 40,000,000 The Committee has ricommended fundine for the Trade and De-velopment Program at the requested level of $40,000,000. This rep-resents a $5,517,000 increase over the fiscal year 1992 level.

TITLE V--. GENERAL PROVISIONS The Committee recommends that the following new and revised general provisions be included in the bill.

(

AID ENTERTAINMENT EXPENSES t

The Committee has revised section 508 to reduce the railing on entertainment expenses for AID to $5,000 from 511,500 requested by the Administration.

t-

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