Briefing by CEZ Group in the Czech Republic
Evaluation Focused on 'Construction Period and Price Guarantee'... Korea Hydro & Nuclear Power Rated the Best
EDF Did Not Reflect Any of the Czech Side's Requirements
Daniel Benes, CEO of Czech Power Company (CEZ), stated on the 7th (local time), "This is my personal opinion, but I do not think we will sign a contract with Electricite de France (EDF) for the Dukovany Units 5 and 6 project."
During a briefing held at the Liechtenstein Palace in Prague, Czech Republic, Benes explained, "EDF did not reflect any of the Czech side's requirements during the negotiation process," and made the above remarks.
Daniel Benes, CEO of Czech Power Company (CEZ), is explaining the Dukovany Units 5 and 6 project at the Liechtenstein Palace located in Prague, Czech Republic, on the 7th (local time). (Photo by Ministry of Trade, Industry and Energy Joint Press Corps)
Benes emphasized, "During the evaluation process, we assessed how well and how actively each bidder could meet the Czech requirements, such as adhering to the construction period and guaranteeing the contracted construction cost. Korea Hydro & Nuclear Power, the preferred negotiating partner, provided the most reliable guarantees regarding price and schedule compliance."
Regarding the provisional injunction issued by the Brno District Court the previous day, which suspended the final signing of the Dukovany Units 5 and 6 nuclear power plant construction contract at EDF’s request, Benes said, "That action was not easy to anticipate," and added, "Since EDF could not win logically, it seems they are trying to derail the Dukovany Units 5 and 6 project itself. It appears that Europe wants only EDF to participate in nuclear power projects, and that is why such lobbying is taking place."
Czech Power Company plans to file a lawsuit soon to have the injunction lifted. Benes stated, "We will file a motion to dismiss the injunction with the High Administrative Court next week," and added, "Although there is no specific deadline for the Supreme Administrative Court to review the case, I hope the High Administrative Court will make a prompt decision, given the importance of the matter."
Furthermore, the Czech side plans to claim damages from EDF for delays in construction. Thomas Pleskach, Head of the New Business Division at CEZ, said, "This is a very new situation, so we have not yet calculated the amount of damages, but the key will be how much the project is delayed," and added, "If the delay lasts several months, we expect the damages to amount to several hundred million Czech koruna, and we will calculate and claim these damages."
Thomas Pleskach, Head of New Business Division at CEZ, is explaining the Dukovany Units 5 and 6 project on the 7th (local time) at the Liechtenstein Palace located in Prague, Czech Republic. (Photo by Ministry of Trade, Industry and Energy Joint Press Corps)
CEZ also refuted each of EDF’s previous claims. First, regarding the criticism that CEZ did not communicate properly with EDF, Pleskach said, "The two sides held several negotiations at the highest executive level, during which we explained to EDF multiple times what needed to be improved," and added, "Despite providing detailed explanations on several occasions, EDF neither reflected nor improved upon the issues and requests raised by CEZ in the final bid. In the end, none of our requirements were accepted."
Regarding localization, Pleskach stated that EDF did not accept the Czech side's requirements. He explained, "Initially, Doosan Skoda (the Czech subsidiary of Doosan Enerbility) was only supposed to supply turbines, but through negotiations, we are now pushing for Doosan to supply not only turbines but also all auxiliary equipment," and added, "Localization is important, and it is also very important for local companies to participate in future maintenance. There are already experienced Czech companies, and I am confident they can fully supply the entire turbine hall." He continued, "In contrast, EDF refused to use turbines from Czech companies."
CEZ also expressed an apology to the Korean delegation that visited the Czech Republic for the final contract. Benes said, "Although the possibility of such an action was not zero, it was very unlikely and therefore difficult to anticipate," and added, "On behalf of the Czech side, I apologize to the Korean government representatives. While it is unfortunate that the schedule has changed, I hope the talks will still be productive."
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