Japan, US to support US nuclear power projects-media

TOKYO, Jan 8 (Reuters) Japan and the United States have agreed to provide financial guarantees that could make it easier for Japanese firms to play a part in the construction of US nuclear power plants, media reports said today.

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

The plan will be formalised in a meeting tomorrow between visiting Japanese Trade Minister Akira Amari and US Energy Secretary Samuel Bodman, the paper said.

US power utilities are planning to build more than 30 nuclear plants following a decision by the US government to lift a freeze on new plants after the 1979 accident at Three Mile Island, the Yomiuri said.

Kyodo news agency said Japan wanted to encourage Japanese nuclear reactor manufacturers such as Toshiba Corp and Hitachi Ltd to take part in the planned US projects.

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

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