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New start needed for N.Korea reactors, South says
(Reuters)
Updated: 2005-10-02 14:36

MANY OPTIONS

Although seemingly esoteric, the fate of the suspended project is significant. South Korea has already spent $1.1 billion on it, and the site is about a third complete. The whole 1994 Agreed Framework deal was worth $4.5 billion.

The South has also offered North Korea electricity from its own power grid as part of a new deal. That is one reason why Seoul now wants to scrap the KEDO project, but not immediately.

"As far as Korea is concerned, even though we made an agreement for the termination of the KEDO project, I think KEDO as an entity should exist at least for a certain period of time, for example, say two years," said Ban.

He said this would allow administrative, legal, contractual and bureaucratic matters to be wound up.

Asked whether the existing Sinpo site could be used for any new deal on light-water reactors rather than waste the work already done, Ban said: "That's one of the possibilities, but I can't say anything at this point."

The board of KEDO met late last month at its New York headquarters but did not decide whether to kill the organization and project altogether or further suspend building work. The deadline to decide about the reactor site is the end of November.

Washington wants to end the project. The KEDO reactors would be of U.S. design. Others in the consortium, notably Japan and South Korea, were to pay for them.

Some media reports have said Russia might provide light-water reactors in any new deal, but Ban said there were many options.

"It's too early for me to say anything."

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