Japan Atomic Power to Receive Aid for Nuclear Plant

Economy

Tokyo, March 4 (Jiji Press)--Japan Atomic Power Co. is expected to receive some 300 billion yen in loans to fund safety work at its idled Tokai No. 2 nuclear plant in Ibaraki Prefecture, eastern Japan, informed sources said Monday.

Of the total, Tokyo Electric Power Company Holdings Inc. <9501>, which plans to buy electricity from the nuclear plant, is likely to provide about 190 billion yen in loans and debt guarantees.

Tohoku Electric Power Co. <9506>, Kansai Electric Power Co. <9503>, Chubu Electric Power Co. <9502> and Hokuriku Electric Power Co. <9505> will also offer financial support to Japan Atomic Power, the sources said.

The five electricity companies and major banks aim to finalize their financial support plans by May.

But they may face difficulty in coordinating the aid plans, due partly to differences in opinion over their respective shares of financial contributions and methods, a senior bank official said.

[Copyright The Jiji Press, Ltd.]

Jiji Press