Czech Government Finds Baraka Nuclear Plant... '8 Trillion' Won Bidding War Kicks Off

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Korea's first exported nuclear power plant, the Barakah Nuclear Power Plant in the United Arab Emirates (UAE).
[Photo by Asia Economy DB]

[Asia Economy Sejong=Reporter Lee Jun-hyung] The Czech delegation visited Korea's first exported nuclear power plant, the Barakah Nuclear Power Plant in the United Arab Emirates (UAE). The visit aimed to assess Korea's capabilities in nuclear power plant construction and operation. It is analyzed that the 8 trillion won-scale Czech nuclear power plant bidding competition, in which Korea Hydro & Nuclear Power (KHNP) is participating, is now in full swing.

According to related ministries on the 22nd, the Czech delegation entered the UAE on the 21st and visited the Barakah Nuclear Power Plant on the same day. The delegation consisted of 12 Czech government officials, including Tomas Ehler, Deputy Minister for Nuclear Energy at the Czech Ministry of Industry and Trade. After inspecting the Barakah Nuclear Power Plant, the delegation plans to stay in the UAE until the 23rd and hold meetings with KHNP officials.

The reason the Czech Republic visited the Barakah Nuclear Power Plant was to evaluate preliminary contractors for its own nuclear power project. The Czech Republic is promoting a project to build one pressurized water reactor nuclear power plant with a capacity of less than 1200MW in the southeastern Dukovany region. The project scale is 6 billion euros (approximately 8.3 trillion won), and the main bidding started in March. KHNP plans to submit its bid by the end of this month when the main bidding closes. The competitors are two countries, the United States and France.

What is noteworthy is that the Czech delegation visited the Barakah Nuclear Power Plant, not a nuclear power plant in Korea. The Barakah Nuclear Power Plant is Korea's first exported nuclear power plant, won in the UAE in 2009. After construction began in 2012, it succeeded in commercial operation of Units 1 and 2 last year and this year, respectively, proving Korea's nuclear power competitiveness. Units 3 and 4 of the Barakah Nuclear Power Plant are scheduled to begin commercial operation next year and in 2024, respectively. The Czech government stated last year that "Korea has proven its value as a nuclear partner through the Barakah Nuclear Power Plant."

Dukovany Nuclear Power Plant in Czech Republic.
[Photo by Asia Economy DB]

KHNP's chances of winning the Czech nuclear power plant bid are considered sufficient. Korea's nuclear power plants have world-class price competitiveness and the advantage of adhering to the planned budget and schedule compared to competing countries. According to the World Nuclear Association (WNA), Korea's nuclear power plant construction cost is $3,571 per kW, only 61% of the U.S. cost ($5,833). Compared to another competitor, France ($7,931), it is less than half.

The variable is Westinghouse. Last month, Westinghouse filed a lawsuit in a U.S. court against Korea Electric Power Corporation (KEPCO) and KHNP. The reason is that Westinghouse technology is used in the Korean-designed nuclear power plant (APR-1400), and Korea cannot independently export the APR-1400 to countries like the Czech Republic. Westinghouse insists that its and the U.S. Department of Energy's approval must be obtained for exporting the APR-1400.

However, experts believe that since Korea has already succeeded in core technology independence, Westinghouse's chances of winning the lawsuit are low. There is also a view that this lawsuit is a strategic litigation by Brookfield, a Canadian private equity fund holding 51% of Westinghouse shares. Professor Jung Beom-jin of Kyung Hee University's Department of Nuclear Engineering said, "(The lawsuit) is Brookfield's strategy to raise Westinghouse's value for sale," adding, "When Korea received technology transfer from Westinghouse, a contract was also signed allowing free export to countries other than the U.S."