Private Financing for the Clinch River Breeder Reactor

GAO discussed the proposed private financing for the Clinch River Breeder Reactor (CRBR). The Department of Energy (DOE) has provided financing information on project organization, debt financing, equity financing, and tax benefits. The latest DOE plan calls for the project to be a joint venture comprised of the Federal Government and a partnership of private investors. Project ownership would correspond to respective investments. GAO noted that $1.66 billion has already been spent on the CRBR project and that an additional $2.5 billion will be required to complete it. About $675 million of the $1 billion would be provided from debt financing while about $150 million would be raised by selling equity in CRBR. The plan also calls for the Federal Government to guarantee that equity investors' tax benefits associated with the CRBR will be realized.