Emirates Nuclear Energy Corp (Enec) has awarded US-based company CH2M Hill a 10-year contract to manage the United Arab Emirates' planned civilian nuclear power programme, the official WAM news agency reported.

 The UAE, the world's fifth-largest oil exporter, has said it planned to look into developing nuclear energy to satisfy rising electricity demand as its economy booms on record oil export revenues, straining its power grid.

Enec invited bids for the contract from global firms in August. WAM put no value on the contract.  The UAE has said it will draw up plans to govern the sector and establish a nuclear regulatory authority and an international advisory board of nuclear experts.

This year, the UAE signed deals with the US and Britain about co-operating in peaceful use of nuclear energy.  The United States is at loggerheads with Iran, just across the Gulf from the UAE, over its nuclear programme and fears that it is trying to build a nuclear bomb.

Iran insists its nuclear programme is for peaceful power generation. As part of the contract, Colorado-based CH2M Hill will also assist Enec in implementing any nuclear programme introduced in the UAE through all phases, WAM said.

Engineering and construction company CH2M Hill would be responsible for selecting and overseeing prime contractors, master programme planning, licensing and permitting in accordance with the standards of the UN nuclear watchdog, it added.-Reuters