UAE wealth fund may invest in Sizewell C

UAE sovereign wealth fund Mubadala is considered a potential investor in Sizewell C.

The investment group, whose board includes the owner of Manchester City Football Club, is one of the main bodies backing the £20bn nuclear power plant, sources said.

Negotiations with the fund may have already begun, they said.

Making plans: Sources say Mubadala is one of the key figures in the framework behind the £20bn nuclear power plant

Mubadala is chaired by UAE President Sheikh Mohamed bin Zayed Al Nahyan. Its vice-chairman, Sheikh Mansour bin Zayed Al Nahyan, bought Manchester City in 2008.

The government is expected to approve Sizewell C in a “general investment decision” within days, which will formalize taxpayer support.

The government and EDF, the French energy company that is developing the plant, each hold a 20 percent stake. They are racing to recruit investors to fill the 60% funding gap.

Ministers have introduced a new financing model, a “regulated asset base”, which will allow investors to get their cash back during construction. This is to attract pension funds and institutional investors.

But they are also said to be reaching out to potential backers in the Middle East, Australia and North America.

Alison Downes of campaign group Stop Sizewell C criticized the idea of ​​foreign investors paying with money from “an extra nuclear tax on our bills”.

She added: “If Sizewell C ends up being built by France and funded by the Middle East, the promise of UK energy independence looks hollow.”

A Commerce Ministry spokesman said it was “inappropriate to comment on potential investors”.