BRAZIL: COSTS OF THE NUCLEAR PROGRAM

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 06859454
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 3
• Document Creation Date: March 9, 2023
• Document Release Date: September 18, 2020
• Case Number: F-2017-01987
• Publication Date: November 16, 1977

Approved for Release: 2020/09/11 C06859454
MEMORANDUM FOR: Mr. John Despres
Attached is the information on costs
of the Brazilian nuclear program that you
requested for Ambassador Smith and
Under Secretary Nye.
101 UES.E.,11:4""
.1
Latin America Branch
Developing Nations Division
Office of Economic Research
Date 16 Nov 77
KM 77-10742
(b)(3)
-0DX6)
Approved for Release: 2020/09/11 C06859454
Approved for Release: 2020/09/11 C06859454
. Brazil: Costs of the Nuclear Program
Latest estimates are that Brazil's nuclear program
will cost $15 billion for the nine power reactors slated
through 1990 and another. $5 billion for the full fuel
cycle. These estimates are more than three times those
made just two .years ago. Estimates of costs for power
reactors under the agreement with Germany have jumped
the most, from $600 million each to nearly $2 billion
apiece. As a results. the estimated cost per kilowatt
capacity .for the three reactor Angra complex has grown
from less than $500/kw to $1400/kw. Costs of alternative
energy sources have also risen, although far less.
Estimates for Itaipu hydroelectric capacity have only
increase from $400/kw to $550/kw. Nuclear power from
Angra dos Reis will thus be 2.5-3.0 times as expensive
as hydroelectric power from Itaipu.
#
Another alternative witli far lower capital costa
and improved cost/benefit ratios would be the installation
of thermal plants on the coast which would burn either
US or South African coal.
The high cost of going nuclear has already put the
Brazilian program under financial stress. NUCLEBRAS is
suffering from chronic cash flow problems; the enrichment
facility is being delayed due to a need to recapitalize the
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SECRET
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Approved for Release: 2020/09/11 C06859454
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financing; and serious manpower shortages are being
aggravated by the government's failure to pay competitive
wages for skilled personnel. The financial burden caused
by the nuclear program will also aggravate Brazil's balance
of payments. Direct imports of components and external
financing needs will require that over 80% of the total
program cost be paid for by foreign exchange. Almost
all of the foreign exchange costs will occur during
the initial stages of the program.
The 'costs of the enrichment and reprocessing facilities
are relatively minor compared to the needed investment
for power plants. As a result, the reduced economic
justification for the power program is expected to have
little impact on Brazilian enrichment or reprocessing
plans in the near future.
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ar
Estimated Cost Escalation in Brazil's Nuclear
Program
Facility Cost Estimate - 1975 Estimate - 1977
Angra I (626 MW) $ 400 million $550 million
Angra 11 (1245 MW) $ 606 million $2,000 million
Angra III " $ 600 million $2,000 million
Enrichment Plant $.255 million $700 million
Approved for Release: 2020/09/11 C06859454