Canada May Suspend Support For AECL Bid To Build Ontario Reactors

Ottawa, Ontario (AHN) -The Canadian government is shelving its support for Atomic Energy of Canada Ltd. if it loses its bid for the development of two nuclear reactors in Ontario.

According to news reports citing unnamed sources, Ottawa will blame the provincial government of Ontario if the national nuclear power developer loses the deal to either Areva SA of France or U.S.-based Westinghouse Electric Co.

The Globe and Mail reported that the Ontario contract may decide the fate of AECL: Ottawa to sell or privatize the company or infuse more funding to make it globally competitive.

AECL and SNC-Lavalin Group have asked the federal government to provide them financial support in the Ontario nuclear energy bid. They also requested to even the playing field in the international tenders.

The two new nuclear reactors, which is estimated to cost $6 billion, will be built in Darlington. Deadline for bids was moved to March 31, 2009.