Bad news from our favourite nuclear idiots, French state-controlled nuclear reactor maker Areva when it announced on Friday that its 2008 profits are to take hit. One of the reasons for the fall is the need for ‘an additional provision was set up in the second half of the year on the OL3 EPR reactor project in Finland’. Which means that the budget of the ill-fated project at Olkiluoto has spiralled out of control and is now costing Areva money.
Areva has only itself to blame. In its hubris and arrogance, it offered the OL3 reactor as a ‘turnkey’ project. This meant that the price paid by Finnish utility TVO was capped at three billion Euros. With the budget rocketing to somewhere around double the initial projections, Areva is having to find the extra hence the fall in profits.
In other words, so over-confident were they in their abilities to build OL3 on time and on budget, they said they wouldn’t have to raid Finnish taxpayers wallets any more than for 3.2 billion Euros. Areva’s incompetence meant they’ve had to raid their own wallet. We bet they won’t be so confident or so considerate of the taxpayer next time.