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Thursday, April 2, 2009

Oil-Rich U.A.E Pushes Nuclear Bid

The mating of the words "nuclear" and "Persian Gulf" normally sets off alarm bells in Washington. Yet this oil-rich Arab state just across the gulf from Iran is on a crash course to develop nuclear power with U.S. backing.

Dozens of American engineers, lawyers and businessmen have converged on Abu Dhabi in recent months to help the United Arab Emirates get the Arab world's first nuclear-power program running by 2017. "I don't know anyone else who has rolled out a nuclear program of this magnitude this fast," says Jeffrey Benjamin, an American engineer who in October was named project manager for Emirates Nuclear Energy Corp., which oversees Abu Dhabi's nuclear program.

Some U.S. lawmakers have threatened to block the U.A.E. deal, saying the risks of letting that country split the atom are too large. They cite the U.A.E.'s history as a transit point for sensitive military technologies to Iran, Iraq and Libya. They also make the slippery-slope argument: If one Arab country has nuclear power, others may pile in, and perhaps down the road, seek nuclear weapons as well. Both Saudi Arabia and Egypt have recently announced their desire to develop nuclear-power programs with U.S. assistance.

Western and Asian companies are already salivating at the chance for lucrative contracts with the U.A.E., which has set the end of April as the rough deadline for bids. General Electric Co. and Westinghouse Electric Co. are among the U.S. firms interested in the initial $20 billion in reactor work, say officials familiar with the bidding process. GE and Westinghouse declined to comment.

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