Earlier quoted context omitted.
The government isn't paying to build it. They are only providing loan guarantees, not actual money. And they only have to pay to shut it down if a future government forces it to shut it down before the plant stops being commercially viable. The main purpose of both guarantees is to make it much easier for nuclear reactors to get commercial funding from private banks.
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They don't cost the government anything unless a power plant fails and defaults on it's loans. And even the it's not the full $40 billion. Just the shortfall between what the bank can recover and the cost of the loan. And if the project got anywhere near completely, there should still be a nuclear power plant.
Given that one of the bigger risks to nuclear power plans are changing government regulations, it's actually a pretty low risk loan guarantee for the government to make. There is a decent chance they will never have to activate the guarantee.
> Or, how would you like to provide me loan guarantees? They won't cost you anything. Right?
I mean... What are you taking a loan out on? how does it benefit me? What are the risks of you defaulting? Why is my risk assessment different from the bank? In the case of a default, what is the shortfall likely to be?
With the right answers to those questions, it might be in my interests to guarantee a loan for you.