Egypt decided on Wednesday to build its first nuclear power station in the Mediterranean coastal area of al-Dabaa, putting an end to a controversy over its possible location.

Egyptian President Hosni Mubarak settled the controversy and decided al-Dabaa to be the site during a meeting with members of the Supreme Council for the Peaceful Purposes of Nuclear Power, presidential spokesman Suliman Awwad said in a statement.

“The meeting is very important and marks a leap in the implementation of a strategic program for energy supplies and peaceful uses of nuclear energy,” Awwad was quoted by the state- run MENA news agency as saying.

A debate over the impact of nuclear plant on environment and tourist activities had stalled the decision, since the coast of al- Dabaa, on the west of Alexandria city, is known for its attractive beaches.

Selecting the area as the optimal place for establishing the first nuclear power station is in line with studies carried out in tandem with the International Atomic Energy Agency, the spokesman said.

“Although there were alternative places, the criteria set by the IAEA for selecting the best place for a nuclear power station have stressed that Dabaa is the best site,” Awwad said.

During the council’s meeting, Mubarak issued directives to start establishing nuclear power stations and called for putting out the first nuclear power station to tender before the end of 2010. He was posted on the steps taken so far for implementing a program on peaceful uses of nuclear energy.

IAEA Director General Yukiya Amano said during a visit to Cairo in June that the nuclear watchdog supports Egypt in its bid to establish a peaceful nuclear program and is ready to cooperate with Egypt in this regard.

Electricity Minister Hassan Younis had earlier estimated it would cost about four billion U.S. dollars for a 1,000 megawatt power plant.

Egypt’s People’s Assembly ratified in March a law regulating nuclear and radioactive activities.

In October 2007, President Mubarak announced a plan to build several nuclear power stations to meet the country’s increasing demand of electricity.