Three sites are being studied for the scheme, with Tunis hoping to be using nuclear power by 2020.

Steg is co-operating with the Higher Education, Scientific Research & Technology Ministry, and the country’s nuclear body, the Centre National des Sciences et Technologies Nucleaires.

Tunisia is approaching several nuclear power technology companies, including Atomic Energy Canada and SNC Lavalin, also of Canada, as potential partners for the plant.

The plant will have a capacity of 600-1,000MW. Preliminary estimates put the investment cost at $2,500 a kW, with a total cost of $2.5bn. Steg expects to complete the studies in 2011, after which it will issue tenders.

Demand for electricity in the country is growing at 6 per cent a year, creating a pressing need for more generating capacity.

“After 2010-12, Tunisia will need to build one 400MW power plant every year,” says a power industry source.

Several large projects will significantly increase pressure on supply. Among the schemes being planned, Dubai Holding will develop a $14bn city in the southern Tunis lake area, which will house up to 500,000 people. It will be implemented over 15 years.

“These are upscale developments and per capita consumption will be 10-20 times higher than normal,” says the source.