Czech Court Orders Halt to Administrative Procedures...
Final Contract Scheduled for the 7th Falls Through
Czech Prime Minister: "No Issues with Nuclear Power Plant Bidding"
Korea Hydro & Nuclear Power: "Discussing Future Measures with the Client"
The final contract for Units 5 and 6 of the Dukovany Nuclear Power Plant in the Czech Republic has effectively fallen through. This comes after a Czech court issued an injunction ordering a halt to the contract process just one day before the final agreement was to be signed.
On May 6 (local time), the Brno court in the Czech Republic issued an injunction suspending the final signing of the nuclear power plant construction contract between EDU II, a subsidiary of Czech Power Company, and Korea Hydro & Nuclear Power, the preferred bidder for Units 5 and 6 at Dukovany.
France's EDF, which had competed with Korea Hydro & Nuclear Power for the Czech nuclear project, previously filed a complaint with the Czech competition authority, the Office for the Protection of Competition (UOHS), alleging irregularities in the selection process for the preferred bidder for the new Dukovany nuclear power plant. However, UOHS dismissed the complaint last month, and Korea Hydro & Nuclear Power and EDU II agreed on April 30 to sign the main contract in Prague on May 7.
In response, EDF claimed that UOHS had not properly considered its objection and filed an administrative lawsuit with the Brno District Court seeking to overturn UOHS's decision, along with an injunction to halt the contract process.
Explaining its decision to grant the injunction, the Brno court stated, "If the contract is signed, even if France's EDF later receives a favorable ruling in court, it would lose the opportunity to secure the public contract." The court added, "We recognize the negative consequences of delaying the contract, namely the postponement of the construction of the new Dukovany nuclear power plant. However, we determined that the public interest in ensuring compliance with the law and effective judicial review takes precedence." The court also clarified, "The granting of the injunction does not mean that the plaintiff (EDF) will necessarily prevail in the subsequent lawsuit."
Regarding the court's decision, Korea Hydro & Nuclear Power stated that it is currently discussing future response measures with the client. A representative from Korea Hydro & Nuclear Power said, "The granting of this injunction means that the Czech administrative court has decided to halt the final contract process for the Dukovany nuclear power plant," adding, "We are discussing with the client, EDU II, how to proceed with the final contract and other response measures."
The Czech government maintains that "there are no issues with the current Dukovany nuclear power plant bidding process." On the same day, Czech Prime Minister Petr Fiala emphasized, "The bid evaluation process was conducted correctly in accordance with relevant laws," and stated, "Korea's bid was superior, and the bidding process was transparent and fair."
Since the final contract was canceled just one day before signing due to the court's ruling, it is difficult for Team Korea to avoid criticism for its complacent response. Korea had assembled a large delegation to commemorate what would have been its first nuclear power plant export to Europe, but the trip has inevitably been rendered fruitless. The delegation included Anduk Geun, Minister of Trade, Industry and Energy; Park Sangwoo, Minister of Land, Infrastructure and Transport; Lee Changyun, First Vice Minister of Science and ICT; Kang Inseon, Second Vice Minister of Foreign Affairs; and Kim Seongseop, Vice Minister of SMEs and Startups. In addition, a special parliamentary delegation accompanied the group, including Lee Cheolgyu, Chairman of the National Assembly's Industry, Trade, and SMEs Committee; Park Sungmin, Kang Seunggyu, and Park Sangwoong, members of the People Power Party; Heo Seongmu, member of the Democratic Party of Korea; and Lee Jooyoung, member of the Reform Party.
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