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On December 15, 1995, representatives of KEDO and the Government of the DPRK signed an agreement on the supply of two pressurized light-water reactors (Supply Agreement). The Supply Agreement stipulated the division of responsibility between KEDO and the DPRK regarding provision of the two LWR units (LWR project). Under its provisions, KEDO was responsible for providing two units that met, at a minimum, international, ROK, and U.S. standards of nuclear safety.

The DPRK would be responsible for the ultimate operation, maintenance, and regulation of the reactors, if completed. Specifically, the DPRK operator would be responsible for the safe operation and maintenance of the units, appropriate physical protection, environmental protection, and safe storage and disposal of radioactive waste, including spent fuel. The designated operator of the LWR plant would be the DPRK's General Bureau of Atomic Energy. Responsibility for operation of each LWR plant would commence after initial system testing was complete and nuclear fuel had been loaded into the respective plant.

The DPRK regulatory authority is responsible for issuing construction, commissioning, and operating permits based on its review of the licensing documents and a determination of whether the units met these safety standards. The DPRK is also required to ensure that appropriate nuclear regulatory standards and procedures are in place to ensure the safe operation and maintenance of the units.

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