Czech Republic Dismisses Final Appeal by Rivals over KHNP Nuclear Contract

Temporary Suspension of Contract Lifted
KHNP and Czech Republic Likely to Sign Final Nuclear Plant Construction Deal

The Czech competition authority has given a final ruling that there are no issues with Korea Hydro & Nuclear Power (KHNP) being selected as the preferred bidder for a nuclear power plant construction project.

According to foreign media outlets such as Investing.com on April 24 (local time), the Czech Office for the Protection of Competition (UOHS) announced that it has dismissed the appeal filed by Electricite de France (EDF), which had raised objections to the selection process. UOHS also stated that it has lifted the temporary measure that had suspended contract signing while the objection procedure was underway.

As a result, the likelihood has increased that the final contract for the nuclear power plant construction between KHNP and the Czech government will be signed soon. The two sides initially planned to finalize the contract by March, but the review by the competition authority and the suspension of the contract caused delays.

EDF, a competitor of KHNP, and the American company Westinghouse filed complaints with the competition authority after being eliminated from the preferred bidder selection in July last year, citing issues with the Czech public procurement process and alleging that KHNP would be unable to fulfill the contract.

In November last year, UOHS dismissed all claims by these companies, stating that the objection period had expired or that they lacked standing. Both companies appealed, but it is known that Westinghouse withdrew its appeal after reaching an agreement with KHNP in January to halt their intellectual property (IP) dispute.

The Czech government is currently negotiating with KHNP to build two new nuclear reactors at the existing Dukovany nuclear power plant site. It has also reportedly offered KHNP an option for priority negotiation rights if the plan to add two more reactors at the Temelin nuclear power plant is confirmed.

The Czech Republic has set the budget for the two Dukovany reactors at 400 billion koruna (approximately 26.2 trillion won). The consortium led by KHNP includes Korea Electric Power Corporation (KEPCO) affiliates such as KEPCO Engineering & Construction, KEPCO KPS, KEPCO Nuclear Fuel, as well as private companies like Doosan Enerbility and Daewoo Engineering & Construction.