Due to Obstruction by US Westinghouse, Czech Power Company States "No Standing to Object"

As South Korea was selected as the preferred negotiator for the construction project of the Dukovany nuclear power plant in the Czech Republic, American nuclear company Westinghouse protested to the Czech authorities, prompting the Czech Electricity Company (CEZ), the party involved, to directly refute the claims.

On the 26th (local time), according to local media such as Czech News Agency (CTK), Ladislav Kritz, spokesperson for CEZ, stated, "The Dukovany nuclear power plant construction bid includes safety exception regulations, so bidders who lost the bid cannot raise objections regarding the selection process of the preferred negotiator."

Last month, CEZ selected Korea Hydro & Nuclear Power (KHNP) as the preferred negotiator for the construction of two new reactors at the Dukovany nuclear power plant. In response, Westinghouse announced in a press release on the same day that it had filed an appeal with the Czech Antitrust Office to protest this decision.

Westinghouse argued that bidders participating in the nuclear power plant bid must prove to the Czech side that they hold the rights to transfer the nuclear technology intended to be provided to CEZ and local suppliers, as well as the rights to provide secondary licenses (patent permissions). They claimed that KHNP’s APR1000 and APR1400 reactor designs utilize Westinghouse’s patented Generation II System 80 technology.

Furthermore, Westinghouse asserted that KHNP does not own the original technology of the APR1000 and APR1400 reactors and does not have the right to allow third parties to use that technology without Westinghouse’s permission. They also stated that only Westinghouse has the legal right to seek approval from the U.S. government necessary for exporting its technology.

Westinghouse competed with KHNP and ?lectricit? de France (EDF) using its AP1000 reactor to win the Czech nuclear power plant construction project but was eliminated. The Czech government selected KHNP as the preferred negotiator on the 17th of last month.

It is known that Westinghouse made the same claims during the bidding process. A KHNP official said, "Westinghouse’s claims are a repetition of existing arguments related to ongoing litigation and arbitration," adding, "The Czech side is already aware of these issues during the preferred negotiator selection process."

Previously, Westinghouse filed a lawsuit in the U.S. in October 2022 against KHNP, arguing that the nuclear technology South Korea intends to export to the Czech Republic and other countries is Westinghouse’s technology and thus subject to U.S. export control regulations. Separately, international arbitration proceedings are underway at the Korean Commercial Arbitration Board. In this regard, the Korean government, including the Ministry of Trade, Industry and Energy, and KHNP are continuing negotiations with the U.S. government and Westinghouse.

Westinghouse’s raising of issues with the Czech government is interpreted as an attempt to pressure KHNP to steer the dispute in its favor. For KHNP to finalize the Czech nuclear power plant contract by March next year, it is advisable to notify the U.S. government of the Czech nuclear export, which requires a smooth resolution of the intellectual property dispute with Westinghouse.

Meanwhile, last September, the U.S. Federal District Court in Washington D.C. dismissed the case, stating, "The authority to control nuclear exports lies entirely with the U.S. government, so Westinghouse lacks standing to sue," but Westinghouse immediately appealed the decision.