oversight

Nuclear Nonproliferation and Safety: Concerns With the International Atomic Energy Agency's Technical Cooperation Program

Published by the Government Accountability Office on 1997-09-16.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                  United States General Accounting Office

GAO               Report to Congressional Requesters




September 1997
                  NUCLEAR
                  NONPROLIFERATION
                  AND SAFETY
                  Concerns With the
                  International Atomic
                  Energy Agency’s Technical
                  Cooperation Program




GAO/RCED-97-192
      United States
GAO   General Accounting Office
      Washington, D.C. 20548

      Resources, Community, and
      Economic Development Division

      B-277303

      letter date goes here

      The Honorable Jesse A. Helms
      Chairman, Committee on Foreign Relations
      United States Senate

      The Honorable Dan Burton
      Chairman, Committee on Government Reform
        and Oversight
      House of Representatives

      The Honorable Bob Graham
      United States Senate

      The Honorable Peter Deutsch
      The Honorable Robert Menendez
      House of Representatives

      The International Atomic Energy Agency (IAEA)1 has the dual role of
      promoting the peaceful uses of nuclear energy and verifying that nuclear
      materials under its supervision are not diverted to military purposes
      (safeguards).2 Since 1958, in promoting the peaceful uses of nuclear
      energy through its technical cooperation program, IAEA has provided
      technical assistance to its member states by supplying equipment, expert
      services, and training that support the upgrading or establishment of
      nuclear techniques and facilities. Although the United States does not
      receive technical assistance, it has been the leading financial donor to
      IAEA’s technical cooperation program.


      In March 1997, we reported to you on IAEA’s technical assistance for Cuba,
      including assistance for the partially completed Cuban nuclear power


      1
       IAEA, an autonomous international organization affiliated with the United Nations, was established in
      Vienna, Austria, in 1957. IAEA’s principal policy-making organizations are the General Conference,
      composed of representatives of the 124 IAEA member states; its decision-making body, the 35-member
      Board of Governors; and a Secretariat headed by a Director General. The United States is a permanent
      member of IAEA’s Board of Governors.
      2
       In the early 1960s, IAEA established an inspection program based on a system of technical measures,
      referred to as safeguards, designed to detect the diversion of significant quantities of nuclear material.
      The 1970 Treaty on the Non-Proliferation of Nuclear Weapons expanded IAEA’s safeguards
      responsibilities because it required signatory non-nuclear-weapon states to agree not to acquire
      nuclear weapons and to accept IAEA’s safeguards for all nuclear material used for peaceful nuclear
      activities. Both the nonproliferation treaty and the Treaty of Tlatelolco—which prohibits nuclear
      weapons in signatory Latin American countries—bind signatories to blanket nonproliferation
      agreements for their entire nuclear program and require inspections of all nuclear facilities by IAEA,
      known as “full-scope” safeguards.



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                   reactors whose construction is suspended.3 As requested, this report
                   examines (1) the purpose and effectiveness of IAEA’s technical cooperation
                   program, (2) the cost of U.S. participation in IAEA’s technical cooperation
                   program, and (3) whether the United States ensures that the activities of
                   IAEA’s technical cooperation program do not conflict with U.S. nuclear
                   nonproliferation and safety goals.


                   While the United States and other IAEA major donor countries believe that
Results in Brief   applying safeguards is IAEA’s most important function, most developing
                   countries believe that receiving technical assistance through IAEA’s
                   technical cooperation program is just as important. The United States and
                   other major donors principally participate in the program to help ensure
                   that the member states fully support IAEA’s safeguards and the 1970 Treaty
                   on the Non-Proliferation of Nuclear Weapons. In the past, the United
                   States and other major donors raised concerns about the effectiveness and
                   efficiency of the technical cooperation program.4 For example, the United
                   States expressed concern that some technical assistance projects were
                   devoid of significant technical, health, or socioeconomic benefit to the
                   recipient country. Most of IAEA’s program evaluation reports, internal
                   audits, and project files that we reviewed, covering the period from 1985
                   through 1996, did not assess the impact of the technical cooperation
                   program, and no performance criteria had been established to help
                   measure the success or failure of the program. For the past 5 years, IAEA’s
                   Deputy Director General for Technical Cooperation has been taking steps
                   to improve the overall effectiveness and efficiency of the program,
                   including establishing a system for measuring the performance of some of
                   its projects. The United States and other major donors strongly support
                   these initiatives, but State Department officials are concerned about their
                   sustainability.

                   The United States provided a voluntary contribution of about $16 million,
                   or about 32 percent of the total $49 million paid by IAEA member states to
                   the technical cooperation fund for 1996. The United States has historically
                   been the largest financial donor to the fund. Because many IAEA member
                   states are not paying into the technical cooperation fund, some member
                   states, including the United States and Japan, are carrying the program

                   3
                    See Nuclear Safety: International Atomic Energy Agency’s Nuclear Technical Assistance for Cuba
                   (GAO/RCED-97-72, Mar. 24, 1997).
                   4
                    Fourteen member states—known as the Geneva Group—are major donors to United Nations
                   agencies, including IAEA. These major donors are Australia, Belgium, Canada, France, Germany, Italy,
                   Japan, the Netherlands, the Russian Federation, Spain, Sweden, Switzerland, the United Kingdom, and
                   the United States.



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             financially. Specifically, for 1996, 72, or about 58 percent, of the 124 IAEA
             member states made no payments at all to the technical cooperation fund,
             yet most of these states received technical assistance from IAEA.

             Officials from the Department of State, the Arms Control and
             Disarmament Agency, and the U.S. Mission to the United Nations System
             Organizations in Vienna, Austria, told us that they do not systematically
             review or monitor all of IAEA’s technical assistance projects to ensure that
             they do not conflict with U.S. nuclear nonproliferation or safety goals.
             However, we found that U.S. officials had sporadically reviewed projects
             in countries of concern to the United States. U.S. officials also told us that
             the vast majority of IAEA’s technical assistance projects do not pose any
             concerns about nuclear proliferation because the assistance is generally in
             areas, such as medicine and agriculture, that do not involve the transfer of
             sensitive nuclear materials and technologies. However, we found that IAEA
             has provided nuclear technical assistance projects for Iran, North Korea,
             and Cuba—all countries where the United States is concerned about
             nuclear proliferation and threats to nuclear safety. For example, although
             the United States strongly opposes the completion of Iran’s Bushehr
             nuclear power plant because civilian nuclear technology and training
             could help advance Iran’s nuclear weapons program, IAEA has budgeted,
             for 1995 through 1999, about $1.3 million in technical assistance related to
             Iran’s efforts to complete the plant. Moreover, a portion of the funds for
             projects in countries of concern to the United States is coming from U.S.
             voluntary contributions to IAEA.


             Under its 1957 statute, IAEA is authorized, among other things, to facilitate
Background   the peaceful uses of nuclear energy, including the production of electric
             power, by supplying materials, services, equipment and facilities to its
             member states, particularly considering the needs of the developing
             countries. About 90 countries receive technical assistance, mostly through
             over 1,000 projects in IAEA’s technical cooperation program. IAEA’ s
             technical cooperation program funds projects in 10 major program areas,
             including agriculture, the development of member states’ commercial
             nuclear power programs, and nuclear safety. The average cost of a
             member state’s technical assistance project is about $60,000.

             IAEA provided about $800 million in technical assistance to its member
             states from 1958 through 1996, for equipment, expert services, training,
             and subcontracts (agreements between IAEA and a third party to provide
             services to IAEA member states). IAEA’s training activities include



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fellowships, scientific visits, and training courses. Egypt was the largest
recipient of IAEA’s technical assistance overall. About 44 percent of the
assistance was spent for equipment, and—from 1980 through 1996—about
half of the funds were provided for assistance in three program areas—the
application of isotopes and radiation in agriculture, general atomic energy
development, and safety in nuclear energy. For 1997 through 1998, IAEA
approved $154 million more in technical assistance for its member states.5

Technical assistance projects are approved by IAEA’s Board of Governors
for a 2-year programming cycle, and member states are required to submit
written project proposals to IAEA 1 year before the start of the
programming cycle. The proposals are appraised for funding by IAEA staff
and IAEA member states in terms of the projects’ technical and practical
feasibility, national development priorities, and the projects’ long-term
advantages to the recipient countries. Because IAEA’s full-scope
safeguards, as embodied in the 1970 Treaty on the Non-Proliferation of
Nuclear Weapons (NPT), emerged after IAEA was established, all IAEA
member states in good standing are eligible for the same privileges,
including receiving technical assistance. IAEA does not bar technical
assistance for member states that do not have IAEA’s full-scope safeguards
or are not parties to the NPT. For example, Pakistan, Israel, and Cuba
receive IAEA’s technical assistance but do not have full-scope safeguards
and are not parties to the NPT.6

U.S. participation in IAEA’s technical cooperation program is coordinated
through an interagency group—the International Nuclear Technology
Liaison Office—which is chaired by the Department of State and includes
representatives from the Department of Energy (DOE), the Arms Control
and Disarmament Agency (ACDA), and the Nuclear Regulatory Commission
(NRC). The United States also maintains a presence at IAEA through the U.S.
Mission to the United Nations System Organizations in Vienna, Austria.
U.S. contractors from Argonne National Laboratory and the National
Academy of Sciences/National Research Council support U.S. training and
fellowship activities for the program. In addition to developing and

5
 According to IAEA officials, about $45 million of this amount is for projects that are currently
unfunded.
6
 India is also not a party to the NPT, but it has not requested technical assistance from IAEA since
1979. Cuba signed the Treaty of Tlatelolco in March 1995 but has not ratified it. According to State
Department officials, despite Cuba’s failure to accept IAEA’s full-scope safeguards, all of Cuba’s
nuclear facilities are subject to safeguards under separate, legally binding agreements between IAEA
and Cuba. In addition, IAEA member states that receive technical assistance must sign a revised
supplementary agreement to ensure that the technical assistance they receive will be used only for the
peaceful applications of atomic energy and that the technical assistance projects in their country will
be subject to IAEA’s safeguards.



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                           coordinating U.S. policy towards IAEA’s technical cooperation program, the
                           interagency group (1) proposes and recommends U.S. support for specific
                           projects—known as “footnote a” projects—only in IAEA member states that
                           are parties to the NPT or other nuclear nonproliferation treaties;7
                           (2) selects courses and participants for U.S.-hosted IAEA training courses
                           and places IAEA fellows at U.S. institutions, such as national laboratories
                           and universities; (3) facilitates purchases of U.S. equipment on behalf of
                           IAEA; (4) recommends U.S. experts and consultants to represent the United
                           States at IAEA meetings, conferences, and symposia; and (5) recruits U.S.
                           nationals to provide expert advice to IAEA and to staff IAEA’s operations. In
                           addition, according to a U.S. Mission official, almost 200 U.S. nationals are
                           employed by IAEA.


                           U.S. officials and representatives of other IAEA major donor countries told
Purpose and                us that the principal purpose of IAEA’s technical cooperation program is to
Effectiveness of           help ensure that IAEA member states, many of whom are developing
IAEA’s Technical           countries, support IAEA’s safeguards and the NPT. Most of the member
                           states participate in IAEA primarily for the nuclear technical assistance it
Cooperation Program        provides. In the past, the United States and other major donors raised
                           concerns about the effectiveness and efficiency of the technical
                           cooperation program. However, since 1992, IAEA has been implementing
                           improvements to the program that the United States and other IAEA
                           member states strongly support.


IAEA’s Technical           While the United States and other IAEA major donor countries believe that
Cooperation Program        applying safeguards is IAEA’s most important function, most developing
Helps Ensure Support for   countries believe that receiving technical assistance through the technical
                           cooperation program is just as important, and they participate in IAEA
Safeguards and the NPT     primarily for the technical assistance it provides. State Department, ACDA,
                           and NRC officials told us that the principal purpose of U.S. participation in
                           IAEA’s technical cooperation program is to help ensure that IAEA member
                           states, many of whom are developing countries, support IAEA’s nuclear
                           safeguards system and the NPT. A State Department document noted that
                           the United States regarded support for the technical cooperation program
                           to developing countries as the “price tag” for safeguards. At an
                           October 1996 meeting, IAEA’s Director General told us that the opportunity


                           7
                            “Footnote a” projects are funded through extrabudgetary cash contributions by IAEA member states
                           that are in addition to these states’ contributions to IAEA’s technical cooperation fund. IAEA considers
                           these projects to be technically sound, but recipient states consider them to be a lower priority than
                           the projects that are funded through the technical cooperation fund.



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to receive technical assistance dissuades member states from engaging in
the proliferation of nuclear weapons.

Representatives from four IAEA major donor countries—Australia, Canada,
Germany, and Japan—told us that they generally agree with U.S. views
that technical assistance is necessary to ensure that developing countries
support safeguards and the NPT. However, representatives from six
developing countries that have benefited from IAEA’s technical
assistance—Argentina, Brazil, China, India, Pakistan, and South
Africa—told us that their countries participate in IAEA primarily because
their participation enables them to receive technical assistance.8
According to the representatives from India, Pakistan, and South Africa,
IAEA would simply become an international “policing” organization for
monitoring compliance with safeguards if IAEA did not provide technical
assistance. A U.S. Mission official stated that several member states,
including India and Pakistan, would be likely to withdraw from IAEA if its
technical assistance were severely scaled back.

According to IAEA officials, IAEA carries out its dual responsibilities and
manages the competing interests of its member states by maintaining a
balance in funding between providing technical assistance and ensuring
compliance with safeguards. As figure 1 shows, in 1996, IAEA spent about
$97 million on safeguards and about $89 million on technical assistance,
accounting for approximately 30 percent and 27 percent, respectively, of
IAEA’s total expenditures of about $325 million.9




8
 Of the about 90 member states that receive IAEA’s technical assistance, 74 do not have operating
nuclear power plants. About 20 of the member states are considered to be “least-developed” countries.
9
 Funding for safeguards comes from IAEA’s regular budget and from extrabudgetary contributions by
member states. Funding for technical assistance comes from voluntary contributions to IAEA’s
technical cooperation fund, extrabudgetary contributions from the United Nations Development
Program and from member states for “footnote a” projects, and a portion of IAEA’s regular budget for
administration and support.



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Figure 1: IAEA’s 1996 Expenditures, by
Major Activity
                                                                                         Administration ($54.0)


                                                                      •                  5%
                                                                                         Nuclear safety ($17.8)
                                                     • 17%

                                                                          30% •          Safeguards ($97.4)

                                                21%
                                                  •



                                                                27% •                    Technical assistance ($89.0)




                                                                                         Other programs ($67.2)



                                         Note: Dollars in millions.

                                         Source: IAEA.




Concerns About the                       In the past, officials in the United States and other IAEA major donor
Effectiveness and                        countries had concerns about the effectiveness and efficiency of the
Efficiency of IAEA’s                     technical cooperation program. A 1993 State Department cable stated that
                                         the United States had long been concerned that “footnote a” projects were
Technical Cooperation                    devoid of significant technical, health, or socioeconomic benefit to the
Program Led to IAEA                      recipient country. Some of the evaluations that we reviewed indicated
Initiatives to Improve the               other deficiencies in the technical cooperation program. For example, an
Program                                  October 1993 special evaluation review of lessons learned from completed
                                         evaluation reviews noted that inadequate project plans and designs
                                         resulted in implementation problems and delays in 30 percent of the
                                         technical assistance projects reviewed from 1988 through 1993. Some of
                                         the negative effects IAEA cited that resulted from insufficient project
                                         planning included (1) approving a 2-year project without obtaining
                                         sufficient evidence about its feasibility; (2) planning research reactor
                                         activities that did not yield significant results because they were
                                         premature or ambitious in relation to local resources; and (3) conducting




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nuclear physics projects in Africa that lacked clear results and benefits to
the recipient country.

IAEA officials in the Department of Technical Cooperation told us they have
not prepared a comprehensive report on the accomplishments of the
program since its inception in 1958. Although IAEA has provided its
member states with detailed descriptions of all of its technical assistance
projects, it did not assess the success or failure of these projects in the
past. According to the head of IAEA’s Department of Technical
Cooperation’s Evaluation Section, evaluations of projects’ impact were not
required because IAEA was focusing on the efficiency of projects’
implementation. Moreover, IAEA stated that in 1993, the technical
cooperation program’s priorities shifted from implementing research and
infrastructure-building activities efficiently to designing projects that have
an impact on the end-user and provide nuclear science and technology
activities that contribute to national development. IAEA noted that it is
unrealistic to expect impact analyses of projects designed and
implemented according to standards that did not embody measures of
impact at the time. In the year 2000, IAEA plans to review the program’s
performance against the criteria for success contained in IAEA’s strategy
for technical cooperation.

We reviewed 40 reports prepared by IAEA’s Department of Technical
Cooperation’s Evaluation Section and summaries of four audits of the
program prepared by IAEA’s Office of Internal Audit and Evaluation
Support, which covered the period from 1985 through 1996, to determine
whether they contained assessments of the program’s effectiveness.10 We
found that most of the 40 reports and audit summaries did not assess the
impact of specific technical assistance projects, and no performance
criteria had been established to help measure the success or failure of the
projects. The evaluations and audits were also limited because insufficient
travel funds generally precluded visits by IAEA staff to the recipient
nations.11 We also reviewed the project files for four selected technical
assistance projects in Iran, North Korea, Bulgaria, and Egypt that had been
completed or canceled by IAEA. None of the project files we reviewed
contained information on the project’s accomplishments. Our review of
other project files was limited by IAEA’s policy on confidentiality, which


10
 Of the 40 IAEA reports that we reviewed, fewer than half were project or program evaluation reports.
The remaining reports were country program summaries that provided an inventory of selected
member states’ projects by program area.
11
 IAEA devotes 1 percent of its resources in the technical cooperation program to program evaluation.
Several major donor countries have expressed a desire to maintain this limit.



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    regards information obtained by IAEA under a technical cooperation
    project as belonging to the country receiving the project. Under this
    policy, IAEA cannot divulge information about a project without the formal
    consent of the receiving country’s government.

    Since 1992, IAEA’s Deputy Director General for Technical Cooperation has
    taken steps to improve the effectiveness and efficiency of the technical
    cooperation program. For example, IAEA is establishing a system for
    measuring the quality and performance of some of its technical assistance
    projects. However, in 1996, IAEA’s Secretariat reported to the Board of
    Governors that outcomes were still clearly defined for only 25 percent of
    the 90 technical assistance projects whose results they had monitored
    from January through October 1996. The Evaluation Section of IAEA’s
    Department of Technical Cooperation is also helping the department to
    establish criteria for measuring the results of a project while planning it.
    The United States and other IAEA major donor countries strongly support
    IAEA’s efforts to improve the effectiveness and efficiency of the program,
    but U.S. officials are concerned that all of the improvements may not be
    fully implemented and made permanent in the 2 years before the term of
    the current Deputy Director General for Technical Cooperation ends.
    (App. I discusses the status of IAEA’s efforts to improve the effectiveness
    and efficiency of the technical cooperation program and the U.S. position
    on these actions.) According to a State Department cable describing the
    results of meetings held in September 1996, the major donors in
    attendance were highly supportive of IAEA’s initiatives to improve the
    program. The donors concluded that they were

•   under increasing pressure at home to demonstrate that their countries’
    contributions to IAEA were being well spent;
•   supportive of the Deputy Director General for Technical Cooperation’s
    efforts to make the entire technical cooperation program more efficient
    and effective;
•   concerned because the technical cooperation program had not set
    priorities or established a schedule for accomplishing improvements to the
    program; and
•   concerned that IAEA’s Department of Technical Cooperation may not have
    the management skills required to accomplish these improvements.

    More recently, during the Board of Governors’ June 1997 meeting, the
    members highly praised IAEA’s efforts in carrying out its initiatives to
    improve the effectiveness and efficiency of the technical cooperation
    program.



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                          Most of the funding for IAEA’s technical cooperation program—about 70
Cost of U.S.              percent—comes from voluntary contributions made by member states to
Participation in IAEA’s   IAEA’s technical cooperation fund. In 1996, the United States provided a

Technical                 total of about $99 million to IAEA, which consisted of about $63 million for
                          IAEA’s regular budget and an additional voluntary contribution of
Cooperation Program       $36 million. About $16 million of the $36 million U.S. voluntary
                          contribution to IAEA went to the technical cooperation fund; this
                          contribution represented about 32 percent of the fund, which totaled
                          $49 million. The remainder of the U.S. voluntary contribution to
                          IAEA—about $20 million—was spent on other forms of support for the
                          technical cooperation program, including (1) U.S.-hosted IAEA training
                          courses, (2) “footnote a” projects, (3) placements of IAEA fellows at U.S.
                          institutions, (4) the services of U.S. experts, and (5) support for other IAEA
                          programs, including safeguards. In 1996, the United States was the largest
                          single supplier of equipment for the program. (App. II provides
                          information on the sources of funding for IAEA’s technical assistance
                          program from 1958 through 1996.)

                          Because many IAEA member states are not paying into the technical
                          cooperation fund, the United States and some other major donors are
                          paying for a larger percentage of the fund than designated. IAEA has
                          informally adopted a target funding level for member states’ contributions
                          to the technical cooperation fund. IAEA’s data show that, as of August 1997,
                          52 of 124 member states had paid into the 1996 technical cooperation fund.
                          The United States and Japan contributed the most, accounting for over
                          half of the total payments to the fund. Seventy-two—or 58 percent—of the
                          member states made no payments at all, yet 57 of these states received
                          technical assistance. In a statement made to IAEA’s Board of Governors in
                          June 1996, the U.S. Ambassador to the U.S. Mission to the United Nations
                          System Organizations in Vienna, Austria, observed that the United States
                          strongly believed that IAEA’s technical assistance should go only to those
                          member states that support technical assistance fully, by paying their fair
                          share. The Ambassador further noted that, because many IAEA member
                          states are not paying their designated share of the technical cooperation
                          fund, some member states, including the United States and Japan, are
                          carrying the program financially, by paying more than their share. (App. III
                          lists the IAEA member states and their shares of and payments to the 1996
                          technical cooperation fund.)

                          The Ambassador of the Permanent Mission of the Republic of South Africa
                          in Vienna, Austria, who chairs IAEA’s Informal Consultative Working Group
                          on the Financing of Technical Assistance, told us that the group was



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                        designed to, among other things, encourage member states to increase
                        their payments to the fund and to review whether member states that have
                        not regularly paid into the fund should receive the benefits of IAEA’s
                        technical assistance. The Ambassador from South Africa also told us that
                        many of the developing countries that are members of IAEA believe that
                        funding for the technical cooperation program should be predictable and
                        assured and have proposed that the program be funded through member
                        states’ contributions to IAEA’s regular budget. The major donors do not
                        support this proposal because they believe that the program will be
                        adequately funded if all member states provide financial support for the
                        program. Representatives of the major recipients of IAEA’s technical
                        assistance, including Argentina, China, Pakistan, and South Africa, told us
                        that they are concerned that some major donors are considering reducing
                        their voluntary contributions to IAEA, which fund the technical cooperation
                        program. Canadian and German representatives told us that their
                        countries may reduce their voluntary contributions to IAEA because of
                        budget constraints. In a statement before the June 1997 meeting of IAEA’s
                        Board of Governors, the Ambassador from South Africa said that the
                        members of the working group were deeply divided on whether to put the
                        technical cooperation fund into IAEA’s regular budget. She believed,
                        however, that IAEA should take member states’ records of payment to the
                        technical cooperation fund into account in deciding upon requests for
                        technical assistance. IAEA officials stated that they took member states’
                        past payments to the fund into account when preparing for their 1997-98
                        program.


                        U.S. officials do not systematically review or monitor all of IAEA’s technical
U.S. Officials Do Not   assistance projects to ensure that IAEA’s activities do not conflict with U.S.
Systematically          nuclear nonproliferation and safety goals. We found that U.S. officials had
Monitor Projects for    sporadically reviewed projects in countries of concern to the United
                        States. Several of IAEA’s technical assistance projects were related to a
Consistency With U.S.   nuclear power plant under construction in Iran, to uranium prospecting
Nuclear                 and exploration in North Korea, and to a nuclear power plant whose
                        construction has been suspended in Cuba. These are countries where the
Nonproliferation and    United States has concerns about nuclear proliferation and threats to
Safety Goals            nuclear safety. Moreover, since 1996, a portion of the funds for projects in
                        countries of concern to the United States has come from U.S. voluntary
                        contributions to IAEA.




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U.S. Officials’ Reviews of   The Special Assistant to the U.S. Representative to IAEA in the State
Technical Assistance         Department’s Bureau of Political-Military Affairs told us that the State
Projects Are Sporadic        Department, in conjunction with its contractor at the Argonne National
                             Laboratory, is chiefly responsible for reviewing IAEA’s technical assistance
                             projects for consistency with U.S. nonproliferation and safety goals before
                             the projects are approved by IAEA’s Board of Governors. However, we
                             found that although U.S. officials at the State Department and U.S. Mission
                             have reviewed technical assistance projects in countries of concern to the
                             United States sporadically, they have not done so systematically. Officials
                             in IAEA’s Department of Technical Cooperation told us that they do
                             coordinate with IAEA’s Department of Safeguards in reviewing projects that
                             may involve the transfer of nuclear materials or other items with
                             implications for proliferation. We also spoke with officials in IAEA’s
                             Department of Safeguards to determine whether they systematically
                             review all of IAEA’s technical assistance projects for consistency with
                             nonproliferation goals. These IAEA officials told us that they do not.

                             We found that the International Nuclear Technology Liaison Office—the
                             interagency group that coordinates U.S. participation in the technical
                             cooperation program and includes representatives from the State
                             Department, DOE, ACDA, and NRC—and the U.S. contractor at Argonne
                             National Laboratory focus their review on the “footnote a” projects that
                             the United States may want to support with U.S. funds. The interagency
                             group does not systematically review the majority of the technical
                             assistance projects that are proposed for funding through IAEA’s technical
                             cooperation fund. Neither does it regularly monitor ongoing projects. An
                             Argonne official informed us that he reviews the list of “footnote a”
                             projects to determine whether they have technical merit and should be
                             funded by the United States; however, he is not responsible for assessing
                             whether these or other projects funded through the technical cooperation
                             fund are in keeping with U.S. nuclear nonproliferation and safety goals.
                             State Department officials in the Bureau of International Organization
                             Affairs told us that the Department did not have the resources to review all
                             of the ongoing technical assistance projects and that U.S. oversight of
                             these projects could be improved.

                             ACDA, DOE, and U.S. Mission officials told us that the vast majority of IAEA’s
                             technical assistance projects do not pose any concerns about nuclear
                             proliferation because the assistance is provided in benign areas, such as
                             medicine and agriculture, that do not involve transferring sensitive nuclear




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                           materials and technologies.12 IAEA’s Director General also told us that IAEA
                           will not provide technical assistance in sensitive areas, such as the
                           reprocessing and enrichment of nuclear material. State Department and
                           U.S. Mission officials told us that if the United States does have concerns
                           about specific technical assistance projects, it can informally raise its
                           objections to IAEA’s Secretariat. However, U.S. officials we spoke with
                           generally could not recall whether the United States had raised objections
                           or had attempted to cancel any projects in the past several years. These
                           U.S. officials also said that the United States does not have absolute
                           control over the approval of specific technical assistance projects because
                           decisions about approving and funding the projects are made collectively
                           every 2 years at the December meeting of IAEA’s Board of Governors.

                           A former U.S. Mission official told us that U.S. Mission representatives can
                           meet informally with IAEA staff to discuss a preliminary list of technical
                           assistance projects months before the Board of Governors’ meeting. The
                           United States and other IAEA member states also have an opportunity to
                           formally review the proposed list of technical assistance projects at IAEA’s
                           General Conference in September and at the November meeting of the
                           Technical Assistance and Cooperation Committee, the final meeting where
                           member states can provide recommendations for the December Board of
                           Governors’ meeting. U.S. officials told us that by the time the list of
                           technical assistance projects reaches the Board of Governors, IAEA
                           member states consider the projects to be approved. The U.S. officials
                           added that it would be rare for representatives from the United States or
                           any other member state to object formally to a specific technical
                           assistance project during a meeting of IAEA’s Board of Governors.


IAEA Provides Technical    Of the total amount in technical assistance (about $800 million) that IAEA
Assistance for Several     provided from 1958 through 1996 for its member states, about $52 million
Projects in Countries of   was spent on technical assistance for countries of concern to the United
                           States, as defined by section 307(a) of the Foreign Assistance Act of 1961,
Concern                    as amended. These countries include Cuba, Libya, Iran, Myanmar
                           (formerly Burma), Iraq, North Korea, and Syria.13 Iran and Cuba ranked
                           19th and 21st, respectively, among the 120 nations that received assistance


                           12
                             Our analysis of the technical assistance that IAEA provided to its member states by program area,
                           from 1980 through 1996, shows that most of IAEA’s assistance was provided in three program
                           areas—the application of isotopes and radiation in agriculture, general atomic energy development,
                           and safety in nuclear energy—as discussed in app. IV.
                           13
                            The Palestine Liberation Organization is also covered under the act but is considered to be a political
                           entity and is thus not a member of IAEA. North Korea has not received technical assistance since it
                           withdrew from IAEA in June 1994.



                           Page 13                               GAO/RCED-97-192 IAEA’s Technical Cooperation Program
                        B-277303




                        over this period, receiving about 1.5 percent each of the total amount in
                        technical assistance that IAEA provided. Projects IAEA provided for these
                        countries involved nuclear training and techniques in medicine and
                        agriculture, including establishing laboratory facilities for the production
                        of radiopharmaceuticals in Iran and using nuclear techniques to improve
                        the fertility of the soil in Iraq and the productivity of the livestock in Libya.
                        (App. IV provides information on the dollar amounts and types of
                        technical assistance that IAEA provided for its members states, including
                        the countries of concern to the United States, from 1958 through 1996.)

                        Although IAEA provides most of its technical assistance in areas that do not
                        generally pose concerns about nuclear proliferation, our review of
                        projects in countries of concern to the United States identified three cases
                        in which IAEA provided technical assistance to countries where the United
                        States has concerns about nuclear proliferation and threats to nuclear
                        safety. A discussion of these three cases follows.


Bushehr Nuclear Power   The United States strongly opposes the sale of any nuclear-related
Plant in Iran           technology to Iran, including the sale of Russian civilian reactor
                        technology, because the United States believes that any nuclear
                        technology and training could help Iran advance its nuclear weapons
                        program. At an April 1997 hearing on concerns about proliferation
                        associated with Iran, held before the Committee on Foreign Relations,
                        Subcommittee on Near Eastern and South Asian Affairs, the former
                        director of the Central Intelligence Agency stated that through the
                        operation of the Bushehr reactor, the Iranians will develop substantial
                        expertise that will be relevant to the development of nuclear weapons.14
                        For 1995 through 1999, IAEA has budgeted about $1.3 million for three
                        ongoing technical assistance projects for the Bushehr nuclear power plant
                        under construction in Iran. As of May 1997, about $250,000 of this amount
                        had been spent for two of these projects. According to IAEA’s project
                        summaries for 1997 through 1998, the three projects are (1) developing a
                        nuclear regulatory infrastructure by training personnel in nuclear safety
                        assessment; (2) establishing an independent multipurpose center that will
                        provide emergency response services, train nuclear regulators, and
                        conduct accident analyses in preparation for licensing the plant; and
                        (3) building the capability of the nuclear technology center in Iran to

                        14
                         In 1973, a German firm began to construct two reactors in Iran near Bushehr, but the construction
                        was halted during the Islamic Revolution in 1979. In 1995, Iran and Russia reached an $800 million
                        agreement for the Ministry of the Russian Federation for Atomic Energy (MINATOM) to resume
                        construction of Unit 1 of the Bushehr nuclear power plant with a Russian VVER-1000 design nuclear
                        power reactor.



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                             support the Bushehr plant. (See app. V for more details on the assistance
                             IAEA is providing to Iran for the Bushehr nuclear power plant.)


                             IAEA also spent about $906,000 more for three recently completed technical
                             assistance projects for the Bushehr plant in Iran.15 According to IAEA’s
                             status reports, the objectives of these projects were (1) to increase the
                             capacity of the Atomic Energy Organization of Iran for evaluating nuclear
                             power plant bids and to develop a regulatory infrastructure and policy;
                             (2) to assist in assessing the status of the Bushehr plant before
                             construction resumed, including advising on nuclear safety criteria for
                             licensing and assisting in developing a national infrastructure for work on
                             the plant’s construction; and (3) to assist in assembling and installing a
                             radioactive waste incinerator for the plant. Under these projects, IAEA has
                             sent experts on numerous missions to conduct safety reviews of the
                             Bushehr plant and has provided equipment, such as computer systems.
                             According to IAEA documents, IAEA believes that this assistance made a
                             valuable contribution to the establishment of an infrastructure for Iran’s
                             nuclear power program. In addition, IAEA cited an on-site assessment of the
                             reactor building and components by Russian contractors as a critical
                             element in the decision to complete the plant.

                             We asked the State Department’s Deputy Assistant Secretary for
                             Nonproliferation for his views on the technical assistance that IAEA has
                             provided for Iran’s Bushehr nuclear power plant. According to his
                             representative in the Bureau of Political-Military Affairs, the Special
                             Assistant to the U.S. Representative to IAEA, the United States, as a general
                             rule, opposes nuclear cooperation with Iran and the State Department
                             would rather not see IAEA provide technical assistance for Iran’s Bushehr
                             nuclear power plant. The State Department official also told us that the
                             United States had informally raised concerns to IAEA about its provision of
                             technical assistance to the Bushehr nuclear power plant.


Uranium Prospecting and      In March 1994, Senator Jesse Helms sent a letter to the President stating
Exploration in North Korea   his concerns about IAEA’s providing technical assistance for uranium
                             exploration in North Korea at a time when the country was suspected of
                             developing a nuclear weapons program.16 According to an April 1994 letter

                             15
                               In addition to these recently completed projects, IAEA spent about $107,000 for two other projects
                             for the plant, completed in 1985. The objectives of these projects were to (1) train a group of Iranian
                             engineers in quality assurance with a view to completing the Bushehr nuclear power plant and
                             (2) assist in assessing the safety of the concrete structure of Unit 1 of the plant’s reactor building.
                             Furthermore, IAEA has funded projects for Iran in uranium prospecting and exploration.
                             16
                               Highly enriched uranium can be used in the development of nuclear weapons.



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                         to IAEA’s Director General from the U.S. Ambassador to the U.S. Mission,
                         IAEA’s Director General had earlier assured U.S. congressional
                         representatives that IAEA had suspended its technical assistance for North
                         Korea because North Korea was in violation of its obligations under the
                         NPT for failing to comply with IAEA’s safeguards. The U.S. Ambassador to
                         the U.S. Mission stated that he was unaware that several technical
                         assistance projects for North Korea were still ongoing or had recently
                         begun. At the June 1994 meeting of the Board of Governors, the U.S.
                         delegation strongly recommended that IAEA’s Director General suspend the
                         provision of technical assistance to North Korea for all activities related to
                         nuclear material, fuel cycle, and nuclear industrial applications until
                         concerns about North Korea’s compliance with IAEA’s safeguards had been
                         resolved. North Korea withdrew from IAEA in June 1994, and its technical
                         assistance projects were canceled.

                         From 1987 through 1994, IAEA spent about $396,000 in technical assistance
                         for two projects on uranium prospecting and exploration in North Korea.
                         According to IAEA’s April 1997 project status reports, the objectives of
                         these projects were (1) to enable North Korea to better assess the
                         potential of its nuclear raw materials in view of its increasing commitment
                         to nuclear power and (2) to provide support for North Korea’s uranium
                         exploration program. Under the uranium prospecting project, which was
                         completed in 1994, the status report shows that IAEA contributed a
                         considerable amount of uranium exploration equipment to North Korea, as
                         well as a microcomputer and software for data processing. IAEA spent
                         more than one-third of the $87,000 budgeted for the follow-on project on
                         uranium exploration before the project was canceled following North
                         Korea’s withdrawal from IAEA.


Nuclear Power Plant in   In March 1997, when we issued our report on IAEA’s nuclear technical
Cuba                     assistance for Cuba, including IAEA’s technical assistance to the partially
                         completed nuclear power plant, the State Department’s Deputy Assistant
                         Secretary for Nonproliferation visited IAEA’s Deputy Director General for
                         Technical Cooperation to raise concerns about IAEA’s technical assistance
                         projects for the nuclear power plant. The Deputy Assistant Secretary
                         noted that strong U.S. support for IAEA’s technical cooperation program
                         could be endangered by perceptions that IAEA is supporting Cuban plans to
                         build an unsafe reactor. He also told IAEA’s Deputy Director General for
                         Technical Cooperation that the United States found it hard to justify IAEA’s
                         provision of assistance to Cuba’s nuclear power plant for quality
                         assurance and licensing when, because of financial constraints, it was



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                            unlikely that the plant would be completed. However, as of June 1997, IAEA
                            was still conducting these two projects in licensing and quality assurance
                            for the Cuban plant.


United States No Longer     In our March 1997 report, we noted that, from 1981 through 1993, the
Withholds Voluntary Funds   United States was required, under section 307(a) of the Foreign Assistance
to IAEA for Countries of    Act of 1961 and related appropriations provisions, to withhold a
                            proportionate share of its voluntary contribution to the technical
Concern                     cooperation fund for Cuba, Libya, Iran, and the Palestine Liberation
                            Organization because the fund provided assistance to these entities. The
                            United States withheld about 25 percent of its voluntary contribution to
                            the fund for these entities. From 1981 through 1995, the State Department
                            withheld a total of over $4 million. State Department officials told us they
                            believe that the withholding was primarily a symbolic gesture that had no
                            practical impact on the total amount of technical assistance that IAEA
                            provided to these countries. On April 30, 1994, the Foreign Assistance Act
                            was amended, and Myanmar (formerly Burma), Iraq, North Korea, and
                            Syria were added to the list of entities from which U.S. funds for certain
                            programs sponsored by international organizations were withheld. At the
                            same time, IAEA was exempted from the withholding requirement.
                            Consequently, as of 1994, the United States was no longer required to
                            withhold a portion of its voluntary contribution to IAEA’s technical
                            cooperation fund for any of these entities. However, State Department
                            officials told us that they misinterpreted the act and continued to withhold
                            funds in 1994 and 1995. Beginning in 1996, the State Department
                            discontinued withholding any of the U.S. voluntary contribution to the
                            fund.17


                            The United States and other IAEA major donor countries have had concerns
Conclusions                 about the effectiveness and efficiency of the technical cooperation
                            program. However, IAEA has taken steps to improve the effectiveness and
                            efficiency of the technical cooperation program and the measurement of
                            the program’s performance. The United States and others strongly support
                            these initiatives, but concerns remain about the sustainability of these
                            improvements.



                            17
                              On June 3, 1997, H.R. 1757, which authorizes appropriations for the Department of State for fiscal
                            years 1998 and 1999, was introduced by the 105th Congress. The bill proposes, among other things,
                            that the United States withhold a proportional share of its funds for IAEA’s programs or projects in
                            Cuba.



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                         The United States is paying for more than its designated share of the
                         technical cooperation fund because many member states are not paying
                         into the fund. Yet many of these states are receiving the benefits of IAEA’s
                         technical assistance. This is contrary to the State Department’s position
                         that all IAEA member states, particularly those that receive technical
                         assistance, should provide financial support for the program.

                         Although U.S. officials are sporadically reviewing technical assistance
                         projects in countries of concern to the United States, they are neither
                         systematically reviewing technical assistance projects before their
                         approval nor regularly monitoring ongoing technical assistance projects.
                         Without a systematic review, U.S. officials may be unaware of specific
                         instances in which IAEA’s assistance could raise concerns for the United
                         States about nuclear proliferation and threats to nuclear safety. Most of
                         the assistance that IAEA provides is not considered to be sensitive.
                         However, in several cases, the technical assistance that IAEA has provided
                         is contrary to U.S. policy goals. Moreover, since 1996, a portion of the U.S.
                         funding has supported technical assistance projects that will ultimately
                         benefit nuclear programs, training, and techniques in countries of concern
                         to the United States, including Iran and Cuba.


                         To assist the Congress in making future decisions about the continued U.S.
Matters for              funding of IAEA’s technical cooperation program, the Congress may wish to
Congressional            require that the Secretary of State periodically report to it on any
Consideration            inconsistency between IAEA’s technical assistance projects and U.S.
                         nuclear nonproliferation and safety goals.

                         If the Congress wishes to make known that the United States does not
                         support IAEA’s technical assistance projects in countries of concern, as
                         defined by section 307(a) of the Foreign Assistance Act of 1961, as
                         amended, it could explicitly require that the State Department withhold a
                         proportional share of its voluntary funds to IAEA that would otherwise go
                         to these countries.


                         We recommend that the Secretary of State direct the U.S. interagency
Recommendations to       group on technical assistance, in consultation with the U.S. representative
the Secretary of State   to IAEA, to systematically review all proposed technical assistance projects
                         in countries of concern, as covered by section 307(a) of the Foreign
                         Assistance Act of 1961, as amended, before the projects are approved by
                         IAEA’s Board of Governors, to determine whether the proposed projects are




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                  consistent with U.S. nuclear nonproliferation and safety goals. If U.S.
                  officials find that any projects are inconsistent with these goals, we
                  recommend that the U.S. representative to IAEA make the U.S. objections
                  known to IAEA and monitor the projects in these countries.


                  We provided copies of a draft of this report to the Department of State for
Agency Comments   review and comment. The Department obtained and coordinated
                  comments from Argonne National Laboratory; ACDA; DOE; NRC; the U.S.
                  Mission to the United Nations System Organizations in Vienna, Austria;
                  and IAEA. On August 1, 1997, we met with officials from the Department of
                  State—including the Deputy Director, Office of Technical Specialized
                  Agencies, Bureau of International Organization Affairs—and from the
                  Department of Energy— including a Foreign Affairs Specialist in the Office
                  of Nonproliferation and National Security. The agencies provided
                  clarifying information and technical corrections, which we incorporated
                  into the report.

                  The agencies generally agreed with the facts as presented in the report and
                  made no comments on our recommendations. They did, however, express
                  one concern about our matters for congressional consideration.
                  Specifically, they suggested that withholding a part of the U.S. voluntary
                  contribution to IAEA that is proportional to all of the assistance that IAEA
                  provides to Cuba, North Korea, and other countries of concern would be
                  seen as a politicization of the technical assistance process that could
                  undercut U.S. nonproliferation objectives. The agencies added that they do
                  not object to IAEA’s providing technical assistance to countries of concern
                  in the areas of nuclear safety, medicine and agriculture. We cannot
                  speculate on how others might view such a withholding requirement.
                  However, as discussed in the report, the United States did, from 1981
                  through 1995, withhold a portion of its voluntary contribution to IAEA,
                  amounting to over $4 million, for technical assistance for countries of
                  concern to the United States. IAEA was exempted from the withholding
                  requirement in 1994, although the State Department continued to withhold
                  funds in 1994 and 1995. Our report also notes the recent introduction into
                  the Congress of a bill proposing that the United States withhold a
                  proportional share of its funds for IAEA’s programs or projects in Cuba.

                  In addition, the agencies said that IAEA’s technical cooperation program, in
                  general, has strongly supported U.S. nuclear safety policy objectives, most
                  notably in Central and Eastern Europe and in the Newly Independent
                  States that operate unsafe Soviet-designed reactors. The agencies further



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              observed that the United States continues to support IAEA’s nuclear safety
              efforts. In appendix IV, we acknowledge IAEA’s contribution to nuclear
              safety, noting that from 1958 through 1996, IAEA spent about 16 percent of
              its technical assistance on safety in nuclear energy.


              We discussed U.S. participation in IAEA’s technical cooperation program
Scope and     with officials of and gathered data from the Department of State; DOE;
Methodology   ACDA; NRC; Argonne National Laboratory; and the National Academy of
              Sciences/National Research Council in Washington, D.C., as well as from
              the U.S. Mission to the United Nations System Organizations and IAEA in
              Vienna, Austria. We met with IAEA’s Director General; Deputy Directors
              General for Administration, Research and Isotopes, Nuclear Energy,
              Nuclear Safety, and Technical Cooperation; the Principal Officer for the
              Deputy Director General for Safeguards; a Senior Legal Officer in the
              Department of Administration; and other staff.

              We reviewed program files at the Department of State and at the U.S.
              Mission to the United Nations System Organizations in Vienna, Austria. We
              gathered financial and programmatic data from IAEA on its technical
              cooperation for the period from 1958, when the program began, until 1996.
              Programmatic data for the entire period were not always available from
              IAEA. We did not independently verify the quality and accuracy of IAEA’s
              data.

              We also met in Vienna, Austria, with representatives from four of the
              member states that are major financial donors to the technical cooperation
              program and six of the states that receive extensive technical assistance or
              represent the views of the developing countries. The four major donors
              were Japan, Australia, Canada, and Germany; the six major recipient
              and/or developing countries were Argentina, Brazil, China, India, Pakistan,
              and South Africa.

              We also reviewed 40 reports on various aspects of the technical
              cooperation program that were prepared by IAEA’s Department of
              Technical Cooperation’s Evaluation Section; summaries of four audits of
              the program prepared by IAEA’s Office of Internal Audit and Evaluation
              Support that covered the period from 1985 through 1996; and four project
              files for selected technical assistance projects in Iran, North Korea,
              Bulgaria, and Egypt that were completed or canceled. We reviewed IAEA’s
              data on the technical assistance projects provided for countries of concern
              to the United States to determine whether IAEA’s assistance conflicted with



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U.S. nuclear nonproliferation and safety goals. We observed two meetings
of the International Nuclear Technology Liaison Office (the U.S.
interagency group that coordinates U.S. participation in IAEA’s technical
cooperation program), the November 1996 meeting of the Technical
Assistance and Cooperation Committee, and the December 1996 meeting
of IAEA’s Board of Governors in Vienna, Austria.

We performed our work from July 1996 through August 1997 in
accordance with generally accepted government auditing standards.


We are sending copies of this report to the Secretaries of State and Energy,
the Chairman of the Nuclear Regulatory Commission, the Director of the
Arms Control and Disarmament Agency, and other interested parties. We
will also make copies available to others on request. Please call me at
(202) 512-3841 if you or your staff have any questions. Major contributors
to this report are listed in appendix VI.




Victor S. Rezendes
Director, Energy, Resources,
  and Science Issues




Page 21                     GAO/RCED-97-192 IAEA’s Technical Cooperation Program
Contents



Letter                                                                                               1


Appendix I                                                                                          26
                         IAEA Has Initiated Efforts to Improve the Program                          26
Improving the            United States Supports IAEA’s Efforts to Improve the Program               27
Effectiveness and
Efficiency of IAEA’s
Technical
Cooperation Program
Appendix II                                                                                         28

Sources of Funding
for IAEA’s Technical
Cooperation Program
From 1958 Through
1996
Appendix III                                                                                        30

IAEA Member States’
Contributions to the
1996 Technical
Cooperation Fund
Appendix IV                                                                                         35
                         Major Recipients of IAEA’s Technical Assistance                            35
Dollar Amount and        IAEA’s Technical Assistance, by Program Area                               36
Type of Technical        Dollar Amount and Type of IAEA’s Technical Assistance for                  37
                           Countries of Concern
Assistance IAEA
Provided for Its
Member States,
Including Countries of
Concern, From 1958
Through 1996


                         Page 22                   GAO/RCED-97-192 IAEA’s Technical Cooperation Program
                        Contents




Appendix V                                                                                          39
                        Infrastructure for Implementation of Bushehr Nuclear Power                  39
IAEA’s Active              Plant Program Project
Technical Assistance    Regulatory Infrastructure for Licensing of Bushehr Nuclear                  40
                           Power Plant Project
Projects for the        Strengthening Reactor Technology for Bushehr Nuclear Power                  40
Bushehr Nuclear            Plant Project
Power Plant in Iran
Appendix VI                                                                                         42

Major Contributors to
This Report
Related GAO Products                                                                                44


Tables                  Table III.1: IAEA Member States That Contributed to the 1996                30
                          Technical Cooperation Fund, Ranked by the Amount Paid as a
                          Percentage of Total Contributions, as of August 1997
                        Table III.2: IAEA Member States That Did Not Contribute to the              32
                          1996 Technical Cooperation Fund, Ranked by the Amount of
                          Assistance Received in 1996, as of August 1997
                        Table IV.1: Major Recipients of IAEA’s Technical Assistance,                36
                          1958-96
                        Table IV.2: Amount and Type of IAEA’s Technical Assistance for              38
                          Countries Currently of Concern to the United States, 1958-96
                        Table V.1: Expenditures for Infrastructure for Implementation of            40
                          Bushehr Nuclear Power Program Project, 1995-97


Figures                 Figure 1: IAEA’s 1996 Expenditures, by Major Activity                        7
                        Figure II.1: Primary Sources of Funding for IAEA’s Technical                29
                          Cooperation Program, 1958-96, Dollars in millions
                        Figure IV.1: Dollar Amount and Type of Technical Assistance                 35
                          That IAEA Provided for Its Member States, 1958-96 Dollars in
                          millions
                        Figure IV.2: Technical Assistance Provided by IAEA for Its                  37
                          Member States, by Program Area, 1980-96




                        Page 23                    GAO/RCED-97-192 IAEA’s Technical Cooperation Program
Contents




Abbreviations

ACDA       Arms Control and Disarmament Agency
DOE        Department of Energy
IAEA       International Atomic Energy Agency
MINATOM    Ministry of the Russian Federation for Atomic Energy
NPT        Treaty on the Non-Proliferation of Nuclear Weapons
NRC        Nuclear Regulatory Commission
UNDP       United Nations Development Program


Page 24                  GAO/RCED-97-192 IAEA’s Technical Cooperation Program
Page 25   GAO/RCED-97-192 IAEA’s Technical Cooperation Program
Appendix I

Improving the Effectiveness and Efficiency
of IAEA’s Technical Cooperation Program

                             In 1992, the International Atomic Energy Agency’s (IAEA) Deputy Director
                             General for Technical Cooperation embarked on a series of improvements
                             so that the technical cooperation program would better meet the needs of
                             its recipients and its impact would be measurable. The United States and
                             other IAEA member states strongly support the Deputy Director General’s
                             efforts to improve the program.


                             When IAEA’s current Deputy Director General for Technical Cooperation
IAEA Has Initiated           began his term in 1992, he established a new strategy for improving the
Efforts to Improve the       effectiveness and efficiency of the program. According to an IAEA paper,
Program                      the goal of the new strategy is to develop partnerships between IAEA and
                             its member states so that technical assistance produces a “measurable
                             socio-economic impact by directly contributing in a cost-efficient manner
                             to the achievement of the highest development priority of the [recipient]
                             country.” Important components of the strategy are “model” projects that
                             are expected to

                         •   respond to a real need of the recipient country,
                         •   produce a significant economic or social impact by looking beyond the
                             immediate recipient of assistance to the final end user,
                         •   demonstrate sustainability after the project’s completion through a strong
                             government commitment,
                         •   require detailed workplans and objective performance indicators, and
                         •   demonstrate an indispensable role for nuclear technology with distinct
                             advantages over other approaches.

                             Since 1994, IAEA has initiated nearly 60 model projects, including those
                             under the 1997-98 technical cooperation program. Few model projects
                             have been completed, so it is too early to assess their impact.
                             Nevertheless, some of the model projects that IAEA expects will have
                             measurable results include

                         •   using a radioimmunoassay to screen for thyroid deficiency in newborn
                             children in Tunisia,
                         •   providing nuclear methods to evaluate the effectiveness of a government
                             food supplement intervention program to combat malnutrition in Peru,
                         •   supporting a program for using nuclear techniques to improve local
                             varieties of sorghum and rice in Mali, and
                         •   eliminating the tsetse fly from the island of Zanzibar using radiation to
                             sterilize male flies.




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                         Appendix I
                         Improving the Effectiveness and Efficiency
                         of IAEA’s Technical Cooperation Program




                         IAEA is also working to design model projects within a “country program
                         framework.” The goal of this framework is to achieve agreement between
                         IAEA and the recipient country on concentrating technical cooperation on a
                         few high-priority areas where projects produce a significant national
                         impact. IAEA expects to have concluded the frameworks with one-half of
                         the recipients of technical assistance by the year 2000.



                         Like most other IAEA member countries, the United States supports the
United States            efforts of IAEA’s Deputy Director General for Technical Cooperation to
Supports IAEA’s          improve the effectiveness and efficiency of the technical cooperation
Efforts to Improve the   program. U.S. officials believe that the initiatives and strategic goals of the
                         Technical Cooperation Department and IAEA are extremely significant,
Program                  particularly now that donor countries’ resources may be declining and the
                         effectiveness and efficiency of all international organizations are being
                         questioned. Since these reform efforts began, the United States has been a
                         strong supporter of the program, making experts available to IAEA, funding
                         specific model projects, and supporting the program in statements before
                         IAEA’s Board of Governors.


                         Although the United States, with other IAEA major donor countries,
                         supports efforts to improve the technical cooperation program, it also
                         shares some concerns with the other major donors about the sustainability
                         of these improvements. State Department officials, including U.S. Mission
                         officials, believe that IAEA must focus on implementation if the efforts at
                         improvement are to last beyond the tenure of the current Deputy Director
                         General, which ends in 1999. According to State Department officials,
                         there is a difference between initiating change and achieving permanent
                         change. These officials have insisted that the Department of Technical
                         Cooperation provide IAEA’s Board of Governors with a strategic plan that
                         will lead to permanent change.




                         Page 27                          GAO/RCED-97-192 IAEA’s Technical Cooperation Program
Appendix II

Sources of Funding for IAEA’s Technical
Cooperation Program From 1958 Through
1996
                  Within IAEA, the Department of Technical Cooperation and three other
                  technical departments—the departments of Research and Isotopes,
                  Nuclear Safety, and Nuclear Energy—are the main channels for
                  technology transfer activities within the technical cooperation program.
                  IAEA receives funding for the costs of administration and related support in
                  the Department of Technical Cooperation and for activities in the three
                  technical departments through IAEA’s regular budget. However, most of the
                  funding for IAEA’s technical assistance—about 70 percent—comes from
                  voluntary contributions made by the member states to IAEA’s technical
                  cooperation fund, as figure II.1 shows. In addition to the technical
                  cooperation fund, other sources of voluntary financial support for the
                  program include the following:

              •   Extrabudgetary cash contributions are made by member states for specific
                  technical assistance projects—known as “footnote a” projects—and for
                  training. Although “footnote a” projects are considered to be technically
                  sound by IAEA, they are of lower priority to recipient member states than
                  the projects that are financed through the technical cooperation fund. The
                  United States endeavors to provide support for “footnote a” projects in
                  countries that are parties to nonproliferation treaties.
              •   Assistance in kind includes equipment donated by member states, expert
                  services, or fellowships arranged on a cost-free basis.
              •   The United Nations Development Program (UNDP) provide funds through
                  IAEA for its development projects that IAEA implements in areas involving
                  nuclear science and technology.




                  Page 28                     GAO/RCED-97-192 IAEA’s Technical Cooperation Program
                                        Appendix II
                                        Sources of Funding for IAEA’s Technical
                                        Cooperation Program From 1958 Through
                                        1996




Figure II.1: Primary Sources of
Funding for IAEA’s Technical                                                               Member states ($93.1)
Cooperation Program, 1958-96, Dollars
in Millions
                                                                 12% •

                                                                         •                 7%
                                                                                           In-kind ($56.8)
                                                                        11%
                                                                          •

                                                  70%
                                                    •




                                                                                           UNDP ($84.9)

                                                                                           Technical cooperation fund
                                                                                           ($558.7)




                                        Note: Figures in parentheses have been rounded and do not include funds from IAEA’s regular
                                        budget that are used to provide administration and support for technical assistance.

                                        Source: IAEA.




                                        Page 29                              GAO/RCED-97-192 IAEA’s Technical Cooperation Program
Appendix III

IAEA Member States’ Contributions to the
1996 Technical Cooperation Fund

                                       For calendar year 1996, fewer than half of the 124 IAEA member states
                                       contributed to the technical cooperation fund. As table III.1 indicates, 52
                                       states contributed a total of about $48.6 million. Of these states, the United
                                       States and Japan contributed the most, accounting for over half of the
                                       total payments to the fund. Twenty-four member states that contributed to
                                       the fund also received about $22.5 million in technical assistance from
                                       IAEA.


Table III.1: IAEA Member States That
Contributed to the 1996 Technical                                Designated
Cooperation Fund, Ranked by the                          percentage of $64.5                      Actual percentage of
Amount Paid as a Percentage of Total   Member state       million fund target Amount paid to fund      total payments
Contributions, as of August 1997       United States                  25.00           $15,723,000a                 32.4
                                       Japan                          13.97             9,010,650                 18.60
                                       Germany                         8.96             4,579,200                  9.40
                                       France                          6.33             4,082,850                  8.40
                                       United Kingdom                  5.28             3,405,600                  7.00
                                       Canada                          3.08             1,914,077                  4.00
                                       Netherlands                     1.58             1,019,100                  2.10
                                       Australia                       1.47               969,925                  2.00
                                       Sweden                          1.22               786,900                  1.60
                                       Switzerland                     1.21               780,450                  1.60
                                       Austria                         0.85               548,250                  1.10
                                       Mexico                          0.78               503,100                  1.00
                                       China                           0.72               464,400                  1.00
                                       Denmark                         0.70               451,500                  0.90
                                       Finland                         0.61               393,450                  0.80
                                       Spain                           2.25               355,155                  0.70
                                       Norway                          0.55               354,750                  0.70
                                       Korea, Republic
                                       of                              0.80               350,000                  0.70
                                       Argentina                       0.48               310,000                  0.60
                                       Poland                          0.38               245,100                  0.50
                                       Turkey                          0.34               219,300                  0.50
                                       Czech Republic                  0.32               206,400                  0.40
                                       India                           0.31               199,950                  0.40
                                       Iran                            0.60               190,000                  0.40
                                       Brazil                          1.62               151,028                  0.30
                                       South Africa                    0.34               109,650                  0.20
                                       Israel                          0.26               100,000                  0.20
                                       Hungary                         0.15                96,750                  0.20
                                                                                                             (continued)



                                       Page 30                      GAO/RCED-97-192 IAEA’s Technical Cooperation Program
Appendix III
IAEA Member States’ Contributions to the
1996 Technical Cooperation Fund




                                Designated
                        percentage of $64.5                      Actual percentage of
Member state             million fund target Amount paid to fund      total payments
Romania                                    0.15                     96,750                           0.20
Malaysia                                   0.14                     90,300                           0.20
Thailand                                    013                     83,850                           0.20
Portugal                                   0.20                     69,900                           0.10
Indonesia                                  0.14                     70,000                           0.10
Slovakia                                   0.10                     64,500                           0.10
Colombia                                   0.11                     60,000                           0.10
Egypt                                      0.07                     50,445                           0.10
Algeria                                    0.16                     50,000                           0.10
Ireland                                    0.20                     50,000                           0.10
Slovenia                                   0.07                     48,762                           0.10
Cuba                                       0.07                     45,150                           0.10
Pakistan                                   0.06                     38,700                           0.10
Philippines                                0.06                     38,700                           0.10
Morocco                                    0.03                     20,000                           0.04
Iceland                                    0.03                     19,350                           0.04
Bulgaria                                   0.10                     10,000                           0.02
Bangladesh                                 0.01                      6,450                           0.01
Lebanon                                    0.01                      6,450                           0.01
Liechtenstein                              0.01                      6,450                           0.01
Vietnam                                    0.01                      6,450                           0.01
Sri Lanka                                  0.01                      5,000                           0.01
Syria                                      0.05                      4,000                           0.01
Total                                                        $48,579,932

a
 In addition, the United States paid $402,000 in fiscal year 1995 that was credited to fiscal year
1996.

Source: IAEA.



In 1996, 72, or about 58 percent, of the 124 IAEA member states did not
contribute to the technical cooperation fund. Fifty-seven of these states
received a total of $26,039,722 in technical assistance from IAEA, as table
III.2 indicates.




Page 31                               GAO/RCED-97-192 IAEA’s Technical Cooperation Program
                                       Appendix III
                                       IAEA Member States’ Contributions to the
                                       1996 Technical Cooperation Fund




Table III.2: IAEA Member States That
Did Not Contribute to the 1996                                                             Amount of technical assistance
Technical Cooperation Fund, Ranked     Member state                                                      received in 1996
by the Amount of Assistance Received   Tanzania                                                                 $2,020,700
in 1996, as of August 1997
                                       Ghana                                                                     1,508,200
                                       Nigeria                                                                   1,342,100
                                       Peru                                                                      1,222,200
                                       Mongolia                                                                    962,400
                                       Chile                                                                       946,900
                                       Sudan                                                                       935,200
                                       Myanmar (Burma)                                                             922,700
                                       Ukraine                                                                     906,600
                                       Bolivia                                                                     771,300
                                       Albania                                                                     695,900
                                       El Salvador                                                                 683,000
                                       Armenia                                                                     667,000
                                       Ethiopia                                                                    635,000
                                       Uruguay                                                                     633,900
                                       Uganda                                                                      615,600
                                       Costa Rica                                                                  593,100
                                       Venezuela                                                                   578,300
                                       Jordan                                                                      573,000
                                       Namibia                                                                     570,300
                                       Zambia                                                                      492,600
                                       Kenya                                                                       466,700
                                       Tunisia                                                                     442,300
                                       Guatemala                                                                   437,000
                                       Dominican Republic                                                          433,100
                                       Nicaragua                                                                   398,500
                                       Zimbabwe                                                                    371,000
                                       Kazakstan                                                                   368,000
                                       Sierra Leone                                                                366,100
                                       Niger                                                                       354,100
                                       Belarus                                                                     339,400
                                       Mali                                                                        326,300
                                       Cameroon                                                                    323,700
                                       Iraq                                                                        300,200
                                       Madagascar                                                                  288,600
                                       Macedonia                                                                   279,400
                                       Mauritius                                                                   235,700
                                                                                                                (continued)


                                       Page 32                         GAO/RCED-97-192 IAEA’s Technical Cooperation Program
Appendix III
IAEA Member States’ Contributions to the
1996 Technical Cooperation Fund




                                                    Amount of technical assistance
Member state                                                      received in 1996
Croatia                                                                       234,400
Ecuador                                                                       231,500
Cote d’Ivoire                                                                 222,000
Panama                                                                        214,100
Libya                                                                         200,600
Uzbekistan                                                                    158,600
Cyprus                                                                        148,900
Paraguay                                                                      129,900
Senegal                                                                       126,800
Saudi Arabia                                                                  117,400
Zaire                                                                          97,400
United Arab Emirates                                                           90,000
Bosnia and Herzegovina                                                         88,500
Estonia                                                                        77,800
Lithuania                                                                      57,000
Jamaica                                                                        31,900
Marshall Islands                                                                8,600
Haiti                                                                           8,200
Liberia                                                                         6,300
Kuwait                                                                          5,500
Afghanistan                                                                          0
Belgium                                                                              0
Cambodia                                                                             0
Gabon                                                                                0
Georgia                                                                              0
Holy See                                                                             0
Italy                                                                                0
Luxembourg                                                                           0
Monaco                                                                               0
New Zealand                                                                          0
Qatar                                                                                0
Russian Federation                                                                   0
Singapore                                                                            0
Yemen                                                                                0
Yugoslavia                                                                           0
Total                                                                    $26,039,722

                                                             (Table notes on next page)




Page 33                         GAO/RCED-97-192 IAEA’s Technical Cooperation Program
Appendix III
IAEA Member States’ Contributions to the
1996 Technical Cooperation Fund




Note: Technical assistance includes funds from the technical cooperation fund, extrabudgetary
contributions from member states, assistance in kind, and UNDP funds.

Source: IAEA.




Page 34                             GAO/RCED-97-192 IAEA’s Technical Cooperation Program
Appendix IV

Dollar Amount and Type of Technical
Assistance IAEA Provided for Its Member
States, Including Countries of Concern,
From 1958 Through 1996
                                         IAEA spent about $800 million on technical assistance for its member states
                                         from 1958—when the technical cooperation program began—through
                                         1996, for equipment, expert services, training, and subcontracts. Figure
                                         IV.1 shows that about 44 percent of the funds were spent for equipment,
                                         such as computer systems and radiation-monitoring and laboratory
                                         equipment. In 1996, the United States was the largest single supplier of
                                         equipment for IAEA’s technical cooperation program.


Figure IV.1: Dollar Amount and Type of
Technical Assistance That IAEA
Provided for Its Member States,                                                            8%
1958-96 Dollars in Millions                                                                Training course ($67)

                                                                                           1%
                                                                                           Subcontracts ($11)


                                                         •


                                                                     25% •                 Expert services ($195)




                                               44%
                                                 •
                                                                    22% •                  Fellowships/scientific visits ($174)




                                                                                           Equipment ($346)



                                         Note: Figures in parentheses have been rounded.

                                         Source: IAEA.




                                         Of the more than 120 IAEA member states that received IAEA’s technical
Major Recipients of                      assistance from 1958 through 1996, 10 states received more than 20
IAEA’s Technical                         percent of the $800 million given, or about $175.7 million collectively, as
Assistance                               table IV.1 indicates. Egypt, which started to receive technical assistance
                                         from IAEA in 1970, has received the largest total amount.



                                         Page 35                            GAO/RCED-97-192 IAEA’s Technical Cooperation Program
                                         Appendix IV
                                         Dollar Amount and Type of Technical
                                         Assistance IAEA Provided for Its Member
                                         States, Including Countries of Concern,
                                         From 1958 Through 1996




Table IV.1: Major Recipients of IAEA’s
Technical Assistance, 1958-96            Dollars in millions
                                                                                               Amount of          Percentage of
                                                                                                technical                  total   First year
                                                                    Recipient                  assistance            assistance   assistance
                                         Rank                       country                      received              provided was received
                                         1                          Egypt                             $27.5                 3.5         1970
                                         2                          Brazil                             21.3                 2.7         1959
                                         3                          Indonesia                          18.6                 2.3         1959
                                         4                          Thailand                           18.5                 2.3         1959
                                         5                          Peru                               16.1                 2.0         1960
                                         6                          Pakistan                           15.6                 2.0         1959
                                         7                          Philippines                        15.0                 1.9         1959
                                         8                          China                              14.7                 1.9         1959
                                         9                          Poland                             14.4                 1.8         1959
                                         10                         Bangladesh                         14.0                 1.8         1972
                                                                    Total                           $175.7                 22.1
                                         Source: IAEA.




                                         About half—or $334 million—of the $648 million that IAEA spent for
IAEA’s Technical                         technical assistance from 1980 through 1996 was provided for three
Assistance, by                           program areas—the application of isotopes and radiation in agriculture,
Program Area                             general atomic energy development, and safety in nuclear energy—as
                                         figure IV.2 shows.18 Moreover, two other program areas—nuclear
                                         engineering and technology, and the application of isotopes and radiation
                                         in industry and hydrology—received about 26 percent of the funds, for a
                                         total of about $169 million. IAEA approved about $154 million more in
                                         technical assistance projects for its member states for 1997 through 1998.
                                         Over half of this additional assistance will be provided for the application
                                         of isotopes and radiation in medicine, agriculture, and safety in nuclear
                                         energy.




                                         18
                                             IAEA was not able to provide us with data for years prior to 1980.



                                         Page 36                                  GAO/RCED-97-192 IAEA’s Technical Cooperation Program
                                    Appendix IV
                                    Dollar Amount and Type of Technical
                                    Assistance IAEA Provided for Its Member
                                    States, Including Countries of Concern,
                                    From 1958 Through 1996




Figure IV.2: Technical Assistance
Provided by IAEA for Its Member
States, by Program Area, 1980-96
                                                                                              Nuclear engineering and technology

                                                                                              Application of isotopes and
                                                                                              radiation in medicine
                                                            13.1%                             Nuclear physics
                                                                       8.2%
                                                                                6.1%
                                                    13.1%
                                                                                              Nuclear chemistry
                                                                                    3.4%
                                                                                              Prospecting, mining, and
                                                                                       3.3%   processing nuclear materials

                                                                                              1.3%
                                                    16.2%                                     Application of isotopes and
                                                                              19%             radiation in biology

                                                              16.4%                           Application of isotopes and
                                                                                              radiation in agriculture




                                                                                              General atomic energy
                                                                                              development

                                                                                              Safety in nuclear energy

                                                                                              Application of isotopes and radiation
                                                                                              in industry and hydrology




                                    Note: Percentages do not total 100 because of rounding.

                                    Source: IAEA.



                                    Of the about $800 million in technical assistance provided by IAEA to all of
Dollar Amount and                   its member states from 1958 through 1996, about $52 million was spent on
Type of IAEA’s                      countries currently of concern to the United States. As table IV.2 indicates,
Technical Assistance                most assistance given to these countries was in the form of equipment.

for Countries of
Concern




                                    Page 37                             GAO/RCED-97-192 IAEA’s Technical Cooperation Program
                                          Appendix IV
                                          Dollar Amount and Type of Technical
                                          Assistance IAEA Provided for Its Member
                                          States, Including Countries of Concern,
                                          From 1958 Through 1996




Table IV.2: Amount and Type of IAEA’s Technical Assistance for Countries Currently of Concern to the United States,
1958-96
Dollars in thousands

                  Rank in terms       First year                     Type of technical assistance
                    of technical      technical                                         Fellowships
Country of           assistance assistance was           Expert                        and scientific
concern                 received       received        services        Equipment               visits     Subcontractsa        Total
Iran                         19               1959        $2,950            $6,006             $2,839                $212    $12,007
Cuba                         21               1963         1,248              8,718              1,915                113     11,994
Syria                        31               1968         1,385              5,078              1,556                256      8,275
North Korea                  36               1978          494               5,142              1,033                   0     6,669
Myanmar                      43               1959         1,505              2,806              1,056                   0     5,368
Libya                        51               1970         1,190              1,441              1,652                   0     4,283
Iraq                         55               1960          912               1,381              1,089                 18      3,400
Total                                                     $9,684           $30,572            $11,141                $599    $51,996
                                          a
                                           Agreements between IAEA and a third party to provide services to member states.

                                          Source: IAEA.




                                          Page 38                             GAO/RCED-97-192 IAEA’s Technical Cooperation Program
Appendix V

IAEA’s Active Technical Assistance Projects
for the Bushehr Nuclear Power Plant in Iran

                      In 1973, a German firm began the construction of two reactors in Iran near
                      Bushehr, but construction was halted during the Islamic Revolution in
                      1979. In 1995, Iran and Russia reached an $800 million agreement for the
                      Ministry of the Russian Federation for Atomic Energy (MINATOM) to resume
                      the construction of Unit 1 of the Bushehr nuclear power plant and to
                      switch from a German-designed to a Russian-designed VVER-1000 model
                      reactor. According to IAEA’s project summaries for the proposed 1997-98
                      program, the decision to resume the Bushehr project with a new design
                      has placed heavy responsibility on Iran’s Nuclear Safety Department, the
                      regulatory body of the Atomic Energy Organization of Iran.

                      For 1995 through 1999, IAEA budgeted about $1.3 million for three ongoing
                      technical assistance projects for the Bushehr nuclear power plant under
                      construction in Iran. As of May 1997, about $250,000 of this amount had
                      been spent for two of these projects. According to IAEA’s project
                      summaries for 1997-98, the three projects are (1) developing a nuclear
                      regulatory infrastructure by training personnel in nuclear safety
                      assessment; (2) establishing an independent multipurpose center that will
                      provide emergency response services, train nuclear regulators, and
                      analyze accidents in preparation for licensing the plant; and (3) building
                      the capability of the Esfahan Nuclear Technology Center in Iran to support
                      the Bushehr plant.


                      This ongoing project was originally approved in 1995 and is partly a
Infrastructure for    continuation of another project—completed in 1995 for about $77,000—to
Implementation of     increase the capability of staff at the Atomic Energy Organization of Iran
Bushehr Nuclear       to evaluate nuclear power plant bids and to develop a regulatory
                      infrastructure and policy. The aim of the ongoing project is to develop a
Power Plant Program   nuclear regulatory infrastructure by training personnel in nuclear safety
Project               assessment and in operator responsibilities. Under the project, IAEA has
                      sent experts on numerous missions to Iran to provide advice and training
                      in quality assurance, project management, and site and safety reviews; has
                      provided supplies such as books and journals; and has sponsored some
                      fellowships and scientific visits. A workshop for the top management of
                      Iran’s atomic energy authority was held on quality assurance in 1995. Eight
                      reports have been prepared under the project by experts on topics such as
                      quality assurance, a preliminary safety review of the plant, and a review of
                      seismic hazard studies at the plant site. As of May 1997, IAEA had spent
                      about $241,000 for expert services, equipment (supplies), and
                      fellowships—or about half of the approximately $494,000 that it plans to
                      spend through 1998, as indicated in table V.1.



                      Page 39                     GAO/RCED-97-192 IAEA’s Technical Cooperation Program
                                       Appendix V
                                       IAEA’s Active Technical Assistance Projects
                                       for the Bushehr Nuclear Power Plant in Iran




Table V.1: Expenditures for
Infrastructure for Implementation of   Year                Expert services          Equipment     Fellowships             Total
Bushehr Nuclear Power Program          1995                          $99,546           $1,126                0        $100,673
Project, 1995-97
                                       1996                           99,269              490           $5,225         104,985
                                       1997                           34,108                0            2,015          36,123
                                       Total                       $232,924            $1,617           $7,240        $241,781
                                       Note: Expenditure data are as of May 1997.

                                       Source: IAEA.




                                       This new model project, which was approved under IAEA’s 1997-98
Regulatory                             technical cooperation program, is intended to improve the overall safety of
Infrastructure for                     the plant by establishing an independent multipurpose center that will
Licensing of Bushehr                   provide emergency response services, train regulators, and analyze
                                       accidents. IAEA will furnish experts to advise, assist, and provide training in
Nuclear Power Plant                    the following areas: (1) identify safety features and evaluate them in the
Project                                context of the VVER-1000 design for formulating the regulatory
                                       requirements; (2) formulate a safety policy and associated licensing and
                                       supervisory procedures for the completion of the plant; (3) train
                                       regulatory staff; (4) evaluate submitted regulatory documents; and
                                       (5) establish a national regulatory inspectorate to carry out inspections
                                       during the design, construction, commissioning, and operation of the
                                       plant. IAEA has already sent a number of experts on missions to Iran as a
                                       part of the project. IAEA expects that the project will help the national
                                       regulatory body to discharge its statutory responsibilities for ensuring that
                                       the plant is constructed according to regulatory standards conducive to
                                       safe operation. As of May 1997, IAEA had provided approximately $8,440 in
                                       expert services and was planning to provide a total of approximately
                                       $403,000 for expert services and fellowships though 1999.


                                       Another new project for the plant, which was approved under IAEA’s
Strengthening Reactor                  1997-98 technical cooperation program, will enhance the ability of Iran’s
Technology for                         Esfahan Nuclear Technology Center to support the Bushehr plant. IAEA’s
Bushehr Nuclear                        project summary states that while Iran’s nuclear technology center has
                                       adequate technical and scientific expertise on nuclear safety and quality
Power Plant Project                    assurance to support Iran’s nuclear regulatory body and the plant, the
                                       center has asked for IAEA’s expert advice and transfer of up-to-date
                                       knowledge. IAEA will provide expert services to help the center analyze the
                                       capabilities of the power plant and will provide training in reactor safety




                                       Page 40                             GAO/RCED-97-192 IAEA’s Technical Cooperation Program
Appendix V
IAEA’s Active Technical Assistance Projects
for the Bushehr Nuclear Power Plant in Iran




analysis and reactor technology. According to the project summary, this
project will develop expertise at the center in safety analysis and other
technical expertise for the Bushehr plant. IAEA plans to provide a total of
$400,800 for expert services and fellowships for the project by 1999.




Page 41                          GAO/RCED-97-192 IAEA’s Technical Cooperation Program
Appendix VI

Major Contributors to This Report


                        Gene Aloise, Assistant Director
Resources,              Sarah E. Veale, Evaluator-in-Charge
Community, and          Daniel Semick, Senior Evaluator
Economic                Duane G. Fitzgerald, Ph.D., Nuclear Engineer

Development
Division, Washington,
D.C.
                        Jackie A. Goff, Senior Attorney
Office of General
Counsel




                        Page 42                    GAO/RCED-97-192 IAEA’s Technical Cooperation Program
Appendix VI
Major Contributors to This Report




Page 43                         GAO/RCED-97-192 IAEA’s Technical Cooperation Program
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              Page 44                     GAO/RCED-97-192 IAEA’s Technical Cooperation Program
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