Malaysia needs to hurry up in prioritising nuclear treaties: Dr Mohd Zamzam Jaafar

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Ref:
http://asian-power.com/people/in-focus/malaysia-needs-hurry-in-prioritising-
nuclear-treaties-dr-mohd-zamzam-jaafar

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Malaysia needs to hurry up in prioritising nuclear treaties: Dr Mohd Zamzam
Jaafar

In line with its vision to reach developed nation status by 2020, Malaysia
is on a mission to energy self-sufficiency. This ambition runs parallel with
the energy demands of a rapidly industrialising nation with a growing middle
class and increasing wealth. On the other side of the equation, of course,
are Malaysia's commitments to reduce fossil fuel dependence (for instance
the Paris agreements, COP21) while at the same time producing increased
energy output.

Dr Mohd Zamzam Jaafar, the first CEO of Malaysia's Nuclear Energy Programme
Implementing Organisation, discusses challenges and solutions related to
Malaysia's quest to "go nuclear" in this Part 2 of an exclusive interview.
Catch up on Part 1 here.

This is no small ambition and one that is fraught with challenges impeding
progress along the road to "going nuclear."

"The first such challenge is gaining public support," says Dr Mohd Zamzam
Jaafar, the founding CEO of the nation's Nuclear Energy Programme
Implementation Organisation. Public support is a ubiquitous challenge for
most nuclear emerging nations, but of course as Zamzam continues, overcoming
public misperceptions is heightened as the wounds of Fukushima continue to
heal. "When we talked to the Ministry of Economy of Japan, approximately 52%
of the public were against restarting - 30% were for a restart. The key is
for them, as it is for us, is convincing the people to agree to the
restart," or in Malaysia's case, to commence a productive programme in the
first place.

The Fukushima accident has stung Malaysian nuclear ambitions not just in
terms of public acceptance but in a serious commercial context as well. "The
cost of nuclear after Fukushima has increased," says Zamzam. "This is due to
the safety features that we have to incorporate in the new designs,
particularly in Generation 3 plant designs. This cost increase coupled with
current low fossil fuel prices, has a negative impact on the competitiveness
of the nuclear industry."

These wounds will heal nonetheless. Fukushima, which must be remembered as
only the third major nuclear accident in over 60 years of utilising the atom
to generate power, will fade and the dual pressures of increasing power
demands and emission reductions will force the issue onto the national
agenda. Meanwhile, fossil fuel costs are naturally set to rise even in an
exporter nation, such as Malaysia.

Government must lead the way

A further challenge emerges due to the fact that the government is slow to
place nuclear treaties and technology agreements on the national agenda.
Putrajaya must ratify (often the most precarious and time-consuming stage)
international instruments in order for Malaysia to access nuclear
technology. Without signing these instruments supplier nations and their
experienced vendors are unable to supply Malaysia with technology.

The government must play an important role, argues Zamzam. "If you consider
the situation in Bangladesh, it is a government-to-government agreement and
even in Turkey, where they're talking about a nuclear BOO for the first
time, it is a government-to-government agreement and I was told that the
Turkish Parliament and the Parliament of Russia have approved this project."

Zamzam argues for strong and consistent government commitment before going
nuclear and fears the project falling off the rails once it gets started, as
has proven to be the Taiwanese experience. In the case of Taiwan, the small
seismically acting, maritime nation had a government committed to a nuclear
framework have even built a handful of plants and parliamentary democracy
brought about stagnation in the roll-out of a productive programme. The
current government is against starting production whereas the old
government, now in opposition, was at least putting the question to a
referendum, not that that was any guarantee.

In the Philippines, after the fall of President Marcos in 1980s, incoming
president Cory Aquino decided that the Bataan plant should be operational
and productive. For any number of political and public opinion reasons, it
did not unfold in this manner and cost the Filipino people US$2.3billion for
a plant that resembled a white elephant.

"So it's very important, says Zamzam, "Once you want to make a commitment to
go nuclear, as a government you have to stay and make it happen to until the
very end."

A positive example, that Zamzam hopes to emulate, is in the United Arab
Emirates, with its first plant slated to commence operations next year. What
is interesting regarding this project is the UAE signed a contract with a
Korean group in December 2009, and the COD will be in May 2017. This seven
and a half year roll-out period shows, among all the projects currently
under construction around the world, that projects can move quickly when
there is political will.

"In the case of Abu Dhabi, they didn't seek financial and that's why they
could work within the contract period of seven and half years. In other
countries, the process will take longer due to financial and capital raising
reasons and that's why we think that nine to ten years is more realistic for
us to run the project, from the contract signing to completion. When you
have a long time of gestation period for a project, it is very important
that the government is strong and consistent with policy in favour of
nuclear."

In Malaysia, the government plays a triumvirate role as policymaker;
lawmaker, licensor and regulator; and insurer. Such a diverse and risky
range of roles can cause jitters in government - and in the people - there
were public protests in relation to the Lynas project in Kuantan a few years
ago - but this must be overcome before Malaysia can move forward.

Moving forward

Malaysia's greatest challenge is overcoming challenges. These are not
insurmountable by any stretch but will take a co-ordinated public relations
campaign and political drive. The southeast Asian Kingdom may have little
choice as the pressure of the energy equation will prevail. Political drive
may be thrust upon Malaysian policy-makers by necessity, the fear being then
that Malaysia will need to push forward too quickly, but safety must come
first, "We cannot rush nuclear, so we have to win the public, we have to
prepare ourselves. So hopefully, when the Integrated Nuclear Infrastructure
Review Mission comes to dissect where we are and what we have done, we will
have a better picture what we need to do in the future."

"That's what it's all about," adds Zamzam, "You have to prepare for all
eventualities in the nuclear world to make sure it is really safe." If the
nation can win over the public, advance the political agenda and welcome on
board its experienced partners and vendors then the industry will flourish,
and while Dr Zamzam is in charge of this push, Malaysia is not far from
seizing the moment.