Canadian Companies Request Federal Support To Build Ontario Nuclear Reactors

Ottawa, Ontario (AHN) - Atomic Energy of Canada Limited (AECL) and SNC-Lavalin Group have asked the federal government to provide financial support in competitive bidding to build two nuclear reactors in Ontario.

The two Canadian firms have asked the federal government to even-the-playing-field to help keep them competitive with potential rivals from France and the U.S., which have government financing.

In a letter to Canadian Natural Resources Minister Gary Lunn, SNC-Lavallin Nuclear president Patrick Lamarre, said Canadian bidders need federal support to maintain the nuclear construction industry, which has huge export potential as more nations tap nuclear energy for their power requirements.

Lunn declined to discuss the request, but told the Globe and Mail, "I absolutely believe that AECL will put forward a commercial proposal and we're there to support that proposal... We believe AECL can be competitive on a commercial basis."

The two new nuclear reactors, expected to cost $6 billion, will be built at the Darlington site of Ontario Power Generation. AECL's competitors are the Areva Group from France and Westinghouse from the U.S.

The province moved final bidding deadline from Oct. 1 to Dec. 31 to give bidders more time to consult with government officials on their efforts. However, new Energy Minister George Smitherman moved the deadline to March 31, 2009.

Critics voice concern about the changed deadlines, saying the delays could hamper plans to have the new reactors operating by July 1, 2018.