IAEA’s technical cooperation program provides nuclear technical assistance through projects that have three main components—equipment, expert services, and training activities (project- and non-project-related), including fellowships, scientific visits, and training courses—that support the upgrading or establishment, for peaceful purposes, of nuclear techniques and facilities in IAEA member states. IAEA’s technical cooperation program funds projects in 10 major program areas, including the development of member states’ commercial nuclear power and nuclear safety programs. Nuclear 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. These proposals are then appraised for funding by IAEA staff and by the agency’s member states in terms of technical and practical feasibility, national development priorities, and long-term advantages to the recipient countries. 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. While the funding for IAEA’s technical cooperation program comes primarily from member states’ voluntary contributions, the funding for activities in the other three technical departments is through IAEA’s regular budget. The United States contributes about 25 percent of IAEA’s regular budget. In 1996, the United States’ contribution to IAEA’s regular budget of $219 million was $63 million. IAEA spent about $12 million on nuclear technical assistance projects for Cuba from 1963—when Cuba started to receive nuclear technical assistance from IAEA—through 1996, for equipment, expert services, fellowships, scientific visits, and subcontracts (agreements between IAEA and a third party to provide services to its member states). IAEA has approved an additional $1.7 million in nuclear technical assistance projects for Cuba for 1997 through 1999. Over half of this additional assistance will be provided for the application of isotopes and radiation in medicine, industry, and hydrology. In addition to the approximately $12 million for nuclear technical assistance projects for Cuba, IAEA spent $2.39 million on regional and interregional training courses for Cuban nationals. These courses were not related to IAEA’s nuclear technical assistance projects. (This information was available from IAEA only for 1980 through 1996.) Cuban nationals attended IAEA training courses in radiation protection and nuclear safety, probabilistic safety assessment, safety analysis and assessment techniques for the operational safety of nuclear power plants, and quality assurance for nuclear power plants. In addition, IAEA spent about $433,000 on research contracts for Cuba. (This information was available from IAEA only for 1989 through 1996.) Under IAEA’s research contract program, the agency places contracts and cost-free agreements with research centers, laboratories, universities, and other institutions in member states to conduct research projects supporting its scientific programs. As shown in figure 1, of the approximately $12 million for nuclear technical assistance projects that Cuba received from 1963 through 1996—about $8.7 million—or almost three-fourths—consisted of equipment, such as computer systems, and radiation-monitoring and laboratory equipment. (App. I provides information on all nuclear technical assistance projects that IAEA provided for Cuba, by program area, from 1980 through 1996. Most of this assistance was provided in the areas of general atomic energy development and in the application of isotopes and radiation in agriculture). While the costs of administration and related support for IAEA’s technical cooperation program are funded through IAEA’s regular budget, most of the funding for IAEA’s nuclear technical assistance projects comes from voluntary contributions made by the member states to IAEA’s technical cooperation fund. Some funding is also provided to IAEA from the United Nations Development Program (UNDP). Other sources of financial support include extrabudgetary income, which is in addition to the funds donated to the technical cooperation fund and is contributed by member states for specific projects, and assistance-in-kind, which is provided by member states that donate equipment, provide expert services, or arrange fellowships on a cost-free basis. As shown in figure 2, IAEA’s technical cooperation fund was the primary source of funding for the nuclear technical assistance projects provided for Cuba, for equipment, expert services, fellowships, scientific visits, and subcontracts. In 1996, the United States voluntarily contributed $36 million to IAEA. Of this amount, the United States contributed over $16 million—about 30 percent—of the total $53 million in the technical cooperation fund. (Cuba contributed its share of $45,150—or 0.07 percent—to the fund in 1996.)From 1981 through 1993, the United States was required, under section 307(a) of the Foreign Assistance Act of 1961, as amended, to withhold a proportionate share of its voluntary contribution to the technical 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, which otherwise would have helped to fund projects for Cuba and the other proscribed entities. On April 30, 1994, the Foreign Assistance Act was amended, and 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 and the United Nations Children’s Fund (UNICEF) were 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, including Cuba. However, State Department officials continued to withhold funds in 1994 and 1995. But beginning in 1996, the United States no longer withheld any of its voluntary contribution to the fund for these entities, including Cuba. Because IAEA’s technical cooperation fund provides nuclear technical assistance for Cuba, from 1981 through 1995, the United States withheld a total of about $2 million that otherwise would have gone for nuclear technical assistance for Cuba. Of the total dollar value of all nuclear nuclear technical assistance projects that IAEA has provided for Cuba, about $680,000 has been approved for four nuclear technical assistance projects for Cuba’s nuclear power reactors from 1991 through 1998. As of January 1997, $313,364 of this amount had been spent for two of these projects. State Department officials told us that they did not object to these projects because the United States generally supports nuclear safety assistance for IAEA member states. Following is a summary of each of these projects. (See app. II for more details.) Since 1991, IAEA has assisted Cuba in undertaking a safety assessment of the reactors’ ability to respond to accidents and in conserving, or “mothballing,” the nuclear power reactors while construction is suspended. The agency had spent almost three-fourths of the approximately $396,000 approved for the project, as of January 1997. Of this amount, Spain has agreed to provide about $159,000 in extrabudgetary funds. According to IAEA’s information on the technical cooperation program for 1995 to 1996, this project is designed to develop proper safety and emergency systems and to preserve the plant’s emergency work and infrastructure in order to facilitate the resumption of the nuclear power plant’s activities. Seven reports were prepared by IAEA experts under this project that discuss the power plant’s ability to cope with a nuclear accident. Our requests to review or to be provided with copies of these reports were denied by IAEA because information obtained by the agency under a technical cooperation project is regarded as belonging to the country receiving the project and cannot be divulged by IAEA without the formal consent of the country’s government. At the time of our review, the government of Cuba had not given IAEA permission to release these reports. Since 1995, IAEA has assisted Cuba in designing and implementing a training program for personnel involved in the operational safety and maintenance of all nuclear installations, including the reactors, in Cuba. IAEA has spent about $31,000 of the about $74,000 approved for the project. Furthermore, according to IAEA’s information on the technical cooperation program for 1995 to 1996, this project will develop and implement an adequate training program that will improve operational safety at all nuclear installations in Cuba and will promote a safety culture. For the 1997 to 1998 technical cooperation program, IAEA has approved two new projects to assist in licensing the reactors and establishing a quality assurance program for them. Funding of about $210,000 has been approved for these two projects. According to IAEA’s information on the technical cooperation program for 1997 to 1998, the objective of the licensing project is to strengthen the ability of Cuba’s nuclear regulatory body to carry out the process of licensing the reactors. According to IAEA’s information, the quality assurance project will assist the nuclear power plant in developing an effective program that will improve safety and lower construction costs. In our September 1992 report and in our August 1995 testimony on the nuclear power reactors in Cuba, we reported that the United States preferred that the reactors not be completed and discouraged other countries from providing assistance, except for safety purposes, to Cuba’s nuclear power program. In a statement made at the August 1995 hearing, the State Department’s Director of the Office of Nuclear Energy Affairs agreed that the United States supported efforts by IAEA to improve safety and the quality of construction at the facility but that the administration strongly believed that sales or assistance to the Cuban nuclear program should not be provided until Cuba had undertaken a legally binding nonproliferation commitment. Cuba is not a party to the 1970 Treaty on Non-Proliferation of Nuclear Weapons, but as a member of IAEA, it is entitled to receive nuclear technical assistance from the agency. State Department officials responsible for IAEA’s technical cooperation program and U.S. Mission officials at the United Nations System Organizations in Vienna, Austria, told us that they did not object to IAEA’s providing nuclear safety assistance to Cuba’s reactors because the United States generally supports nuclear safety assistance for IAEA member states that will promote the establishment of a safety culture and quality assurance programs. These U.S. officials also said that the United States has little control over other IAEA member states that choose to provide extrabudgetary funds for any of the agency’s nuclear technical assistance projects, including those in Cuba. State Department and Arms Control and Disarmament Agency officials told us that the United States will not provide extrabudgetary funds for IAEA’s nuclear technical assistance projects with Cuba or generally to other IAEA member states that are not parties to the Non-Proliferation Treaty, will not host Cuban nationals at training courses held by IAEA in the United States, or select Cuban nationals for training as IAEA fellows in the United States. However, according to the State Department, U.S. experts are allowed to work on IAEA’s nuclear technical assistance projects in the areas of nuclear safety and physical protection for Cuba. We found that one U.S. expert had visited Cuba three times to help with an IAEA nuclear technical assistance project designed to eradicate agricultural pests. We provided copies of a draft of this report to the Department of State for its review and comment. The Department obtained and consolidated additional comments from the Arms Control and Disarmament Agency; the Department of Energy; the Nuclear Regulatory Commission; the U.S. Mission to the United Nations System Organizations and IAEA in Vienna, Austria. On March 5, 1997, we met with an official in the State Department’s Bureau of International Organization Affairs to discuss the consolidated comments. In general, reviewing officials agreed with the facts and analysis presented. Additional clarifying information was provided, and we revised the text as appropriate. An IAEA official in the Department of Technical Cooperation noted that, in assessing the safety and planning for the conservation of Cuba’s nuclear power reactors while their construction is suspended, IAEA’s role in the area of nuclear power is to assist governments in taking actions that are consistent with the highest standards and best practices involving the design, performance, and safety of nuclear facilities. We discussed the United States’ participation in IAEA’s technical cooperation program with officials of and gathered data from the Departments of State and Energy; the Arms Control and Disarmament Agency; the Nuclear Regulatory Commission; Argonne National Laboratory; the National Academy of Sciences; and the National Research Council in Washington, D.C., and the U.S. Mission to the United Nations System Organizations and IAEA in Vienna, Austria. We gathered data from IAEA on its nuclear technical assistance for Cuba, during the period from 1958, when the technical cooperation program began, until 1996. In some cases, funding data for the entire period from 1958 through 1996 was not available from IAEA. Cuba started to receive nuclear technical assistance from IAEA in 1963. We also met with officials in IAEA’s departments of Technical Cooperation and Nuclear Safety who are responsible for managing IAEA’s nuclear nuclear technical assistance projects for Cuba’s nuclear power reactors and with the Vice Minister, Ministry of the Russian Federation for Atomic Energy, to discuss Russia’s plans to complete the Cuban reactors. As agreed with your offices, in a forthcoming report we plan to discuss, among other things, the United States’ participation in IAEA’s technical cooperation program and information on the dollar value and type of nuclear nuclear technical assistance provided to the agency’s member states. We performed our work from November 1996 through March 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) 512-3600 if you or your staff have any questions. Major contributors to this report are listed in appendix III. As shown in figure I.1, almost half—about $5 million—of the $10.4 million that the International Atomic Energy Agency (IAEA) spent for nuclear nuclear technical assistance projects for Cuba from 1980 through 1996 was provided in the areas of general atomic energy development and in the application of isotopes and radiation in agriculture. Nuclear safety was the next largest program area; over 12 percent of the funds, or over $1.2 million, went for nuclear technical assistance projects in this area. Of the total dollar value of all nuclear nuclear technical assistance projects that IAEA has provided for Cuba, about $680,000 has been approved for four nuclear technical assistance projects for Cuba’s nuclear power reactors from 1991 through 1998. As of January 1997, $313,364 of this amount had been spent for two of these projects. IAEA’s four nuclear technical assistance projects for Cuba’s nuclear power reactors include (1) a safety assessment and a plan for conserving the nuclear power plant during the suspension of its construction; (2) training in the safe operation of nuclear installations, including the power plant; (3) helping Cuba’s regulatory body develop a process for licensing the power plant; and (4) developing a quality assurance program for the power plant. This ongoing project was originally approved in 1991 to develop the ability to undertake a safety assessment of Cuba’s nuclear power plant program. In 1995, this project was expanded to, among other things, develop the ability to conduct a safety assessment of the nuclear power plant and to provide supervision and advice in the conservation, or “mothballing”, of the nuclear power plant during the suspension of construction. According to IAEA’s project summaries for the technical cooperation program for 1995 to 1996, this project is designed to develop proper safety and emergency systems and to preserve the plant’s emergency work and infrastructure in order to facilitate the resumption of the nuclear power plant’s activities. A Spanish firm that provides architectural and engineering services is assisting IAEA in providing supervision and advice for the implementation of a plan to suspend the program and is training the Cuban technical staff in conducting a probabilistic safety assessment of the plant. Activities undertaken by the Spanish firm at the plant include the conservation and protection of existing structures, equipment, and components, in order to keep them in the best possible state for future use when the project and the construction of the plant are restarted. Under this project, IAEA has provided experts on regulation, licensing, and emergency planning; equipment, such as personal computers, software, printers; and training in inspections and emergency planning. As of January 1997, IAEA had spent over $282,000 of the approved $395,837 budget, as shown in table II.1 below. Spain also provided extrabudgetary funds for this project. IAEA has spent about $113,000 of the approximately $159,000 that Spain has offered to provide for this project. According to IAEA’s project summaries for the technical cooperation program for 1995 to 1996, this ongoing project is intended to design and implement a training program for personnel involved in the operational safety and maintenance of nuclear installations, including the nuclear power plant. Even though the construction of Cuba’s nuclear power plant was suspended, according to IAEA’s project summaries, Cuba requested assistance to train personnel involved in the operational safety of nuclear installations. IAEA is assisting in designing a training program that will include the development of computerized systems for instruction, simulation, evaluation, and certification of staff. As of January 1997, IAEA had spent about $31,000 of the approved $73,926 for the project, as shown in table II.2. According to IAEA’s project summaries for the technical cooperation program for 1997 to 1998, the objective of this new project is to strengthen the ability of Cuba’s nuclear regulatory body to carry out the process of licensing the nuclear power plant. IAEA’s Board of Governors approved this project in December 1996 for a budget of $107,000 for 1997 through 1998. According to IAEA’s project summaries, Cuba’s nuclear regulatory body asked the agency to help it acquire the ability to review the safety of the nuclear power plant as a preliminary step in the licensing process. In addition, Cuba has asked IAEA to assist its nuclear regulatory body in adopting the best international practices on licensing for the latest design of the VVER 440 megawatt reactors. According to IAEA’s project summaries, the project is designed to provide Cuba’s nuclear regulatory body with the technology needed to be effective and self-sufficient and to promote the safe development of nuclear energy as a contribution to meeting Cuba’s energy needs. According to IAEA’s project summaries for the technical cooperation program for 1997 to 1998, the objective of this new project is to improve and revise the structure, integration, and efficiency of the quality assurance program for Cuba’s nuclear power plant and to evaluate its effectiveness and propose corrective measures. Cuba requested IAEA’s assistance to establish a quality assurance program to conform with IAEA’s nuclear safety standards. IAEA’s Board of Governors approved this project in December 1996 for a budget of $103,150 for 1997 through 1998. The aim of this project, as discussed in IAEA’s project summaries, is to achieve adequate levels of reliability and efficiency in documentation, including the elaboration and preservation of quality assurance records; to provide practical experience for quality assurance and management personnel; and to improve the training of quality control and inspection staff, including training in nondestructive testing and other modern technologies. According to IAEA’s project summaries, this project will provide the nuclear power plant with an effective quality assurance program that will improve the plant’s safety and lower construction costs. Nuclear Safety: Uncertainties About the Implementation and Costs of the Nuclear Safety Convention (GAO/RCED-97-39, Jan. 2, 1997). Nuclear Safety: Status of U.S. Assistance to Improve the Safety of Soviet-Designed Reactors (GAO/RCED-97-5, Oct. 29, 1996). Nuclear Safety: Concerns With the Nuclear Power Reactors in Cuba (GAO/T-RCED-95-236, Aug. 1, 1995). Nuclear Safety: U.S. Assistance to Upgrade Soviet-Designed Nuclear Reactors in the Czech Republic (GAO/RCED-95-157, June 28, 1995). Nuclear Safety: International Assistance Efforts to Make Soviet-Designed Reactors Safer (GAO/RCED-94-234, Sept. 29, 1994). Nuclear Safety: Progress Toward Internatinal Agreement to Improve Reactor Safety (GAO/RCED-93-153, May 14, 1993). Nuclear Nonproliferation and Safety: Challenges Facing the International Atomic Energy Agency (GAO/NSIAD/RCED-93-284, Sept. 22, 1993). Nuclear Safety: Concerns About the Nuclear Power Reactors in Cuba (GAO/RCED-92-262, Sept. 24, 1992). Nuclear Power Safety: Chernobyl Accident Prompted Worldwide Actions but Further Efforts Needed (GAO/NSIAD-92-28, Nov. 4, 1991). Nuclear Power Safety: International Measures in Response to Chernobyl Accident (GAO/NSIAD-88-131BR, Apr. 8, 1988). Nuclear Safety: Comparison of DOE’s Hanford N-Reactor With the Chernobyl Reactor (GAO/RCED-86-213BR, Aug. 5, 1986). The first copy of each GAO report and testimony is free. Additional copies are $2 each. Orders should be sent to the following address, accompanied by a check or money order made out to the Superintendent of Documents, when necessary. VISA and MasterCard credit cards are accepted, also. Orders for 100 or more copies to be mailed to a single address are discounted 25 percent. U.S. General Accounting Office P.O. Box 6015 Gaithersburg, MD 20884-6015 Room 1100 700 4th St. NW (corner of 4th and G Sts. 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Summary: Pursuant to congressional requests, GAO provided information on the International Atomic Energy Agency's (IAEA) nuclear technical assistance to Cuba, focusing on: (1) the dollar value and type of all nuclear technical assistance projects IAEA provided for Cuba; (2) the sources of funding for all nuclear technical assistance projects IAEA provided for Cuba; and (3) IAEA's nuclear technical assistance projects for the Cuban nuclear power reactors and U.S. officials' views on this assistance. GAO noted that: (1) IAEA spent about $12 million on nuclear technical assistance projects for Cuba from 1963 through 1996; (2) about three-fourths of the assistance Cuba received through these projects consisted of equipment; (3) IAEA's assistance for Cuba was given primarily in the areas of general atomic energy development and in the application of isotopes and radiation in agriculture; (4) IAEA recently approved an additional $1.7 million for nuclear technical assistance projects for Cuba for 1997 through 1999; (5) IAEA spent about $2.8 million on training for Cuban nationals and research contracts for Cuba that were not part of specific assistance projects; (6) most of IAEA's nuclear technical assistance projects for Cuba were funded through the agency's technical cooperation fund; (7) in 1996, the United States contributed over $16 million, about 30 percent, of the $53 million in the fund; (8) from 1981 through 1993, the United States was required, under the Foreign Assistance Act of 1961, to withhold a share of its voluntary contribution to the fund because the fund provided assistance for Cuba, Libya, Iran, and the Palestine Liberation Organization; (9) in 1994, the act was amended to exempt IAEA from the withholding requirement; (10) although the United States was no longer required to withhold the portion of its voluntary contribution that would have gone to proscribed entities, State Department officials continued to withhold funds in 1994 and 1995 but did not withhold any of the United States' voluntary contribution to IAEA's technical cooperation fund for 1996; (11) from 1981 through 1995, the United States withheld a total of about $2 million that otherwise would have gone for assistance for Cuba; (12) of the total value of all nuclear technical assistance projects that IAEA has provided for Cuba, about $680,000 was approved for nuclear safety assistance for Cuba's nuclear power reactors from 1991 through 1998, of which about $313,000 has been spent; (13) IAEA is assisting Cuba in developing the ability to conduct a safety assessment of the nuclear power reactors and in preserving the reactors while construction is suspended; (14) IAEA is also implementing a training program for personnel involved in the operational safety and maintenance of all nuclear installations in Cuba; and (15) State Department and U.S. Mission officials in Vienna, Austria, told GAO that they did not object to IAEA's providing nuclear safety assistance to Cuba's reactors because the United States generally supports nuclear safety assistance for IAEA member states that will promote the establishment of a safety culture and quality assurance programs.