The Taiwan Power Co (Taipower,
On orders from the Cabinet, Taipower instructed GE to suspend work on a US$1.8 billion contract to build two 1,350-megawatt advanced boiling water reactors when the government announced it would ax the project in October.
After more than three months of suspension, GE recently advised state-run Taipower that the No. 1 reactor should be completed, as it is already 95 percent finished.
Completing the reactor would allow GE's subcontractors to move onto other projects, a Taipower spokesman said.
"If the reactor is completed, it can be removed from the special construction frame upon which it is being built," the spokesman said. "If the reactor remains on the frame, GE's subcontractors can't begin work on any new projects."
Construction of the main parts of the two reactors is being carried out in Japan by GE's subcontractors in the project, Hitachi and Toshiba, while separately Mitsubishi Heavy Industries is building the steam turbines and generators. US engineering firm Stone and Webster is also involved in the project.
Regardless of whether the project is resumed or not, Taiwan Power is contractually committed to purchasing the reactors and turbines from GE.
"To refuse purchase at this stage would violate conditions set out in the contract, thereby allowing GE to seek compensation," the Taipower spokesman said.
The advice from GE to finish work on the No. 1 reactor was passed on by Taipower to the Ministry of Economic Affairs, which gave its approval earlier this week.
Work on the No. 2 reactor, which is around 80 percent complete, will remain halted, Taipower said.
Local media have long speculated that GE and the US government have exerted pressure on Taiwan's government to complete the plant -- a rumor roundly denied by all parties.
Executives from GE Taiwan were unavailable when sought for comment yesterday.
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