Japan, US to support US nuclear power projects

Tokyo, Jan 8: Japan and the United States have agreed toprovide financial guarantees that could make it easier for Japanesefirms to play a part in the construction of US nuclear power plants,media reports said today.

The Japanese government will offer trade insurance coverage toJapanese companies and the US Energy Department will provide debtguarantees to financial institutions that extend loans to the project,the Yomiuri Shimbun said.

The plan will be formalised in a meeting tomorrow between visitingJapanese Trade Minister Akira Amari and US Energy Secretary SamuelBodman, the paper said.

US power utilities are planning to build more than 30 nuclearplants following a decision by the US government to lift a freeze onnew plants after the 1979 accident at Three Mile Island, the Yomiurisaid.

Kyodo news agency said Japan wanted to encourage Japanese nuclearreactor manufacturers such as Toshiba Corp and HitachiLtd to take part in the planned US projects.

The Yomiuri said the plan would be in the interests of bothJapanese and US firms. Japanese companies have the up-to-date expertiseneeded by their U.S. counterparts, while there is increasing publichostility to building new plants in Japan.

Reuters>