Despite Court Injunction, Czech Government Grants 'Preliminary Approval' for Nuclear Contract with KHNP

Preliminary Approval Granted at Czech Cabinet Meeting
Swift Contract Signing to Follow Court Injunction Lift
Czech Prime Minister: "There Will Not Be a Single Day's Delay"

The Czech government has given preliminary approval to a contract between CEZ (Czech Power Company) and Korea Hydro & Nuclear Power (KHNP) for the construction of two new nuclear reactors at Dukovany. This pre-approval measure was taken so that the contract can be signed immediately once the domestic court's injunction is lifted.

According to the Czech government website on May 7 (local time), the government held a cabinet meeting that day and granted preliminary approval for the new nuclear power plant contract between CEZ and KHNP.

Originally, the Czech government planned to approve the final contract for the new nuclear power plant construction between CEZ and KHNP after it was signed. However, the Brno court in the Czech Republic issued an injunction halting the final signing of the nuclear plant construction contract between CEZ's EDU II and KHNP, which had been selected as the preferred bidder for Dukovany Units 5 and 6. As a result, the final contract was delayed. The government took preparatory steps so that the contract could be signed immediately after the injunction is lifted.

Prime Minister Petr Fiala stated, "While EDF (Electricite de France), which was the final competitor against KHNP, has the right to raise objections, this goes against the interests of the Czech Republic. KHNP's proposal was the best in every aspect, which is why it was selected as the supplier, and today we approved the contract with KHNP and EDU II." He added, "The Czech government respects the court's injunction and the resulting contract delay, but we want to complete all procedures as soon as the court allows the contract to be signed. There will not be a single day's delay."

In this regard, Finance Minister Zbynek Stanjura also commented, "EDU II will appeal the decision of the Brno administrative court to the Supreme Administrative Court as soon as possible. The evaluation process for the bid was conducted lawfully. We hope for a swift decision from the court."

Previously, CEZ held a briefing at the Liechtenstein Palace in Prague, explaining the bidding process for Dukovany Units 5 and 6 and outlining future plans. At the event, CEZ CEO Daniel Benes said, "During the evaluation process, we assessed how well the bidders could meet the Czech Republic's requirements, such as adhering to the construction schedule and guaranteeing the contracted construction costs, as well as how proactive they were. KHNP, as the preferred bidder, provided the most reliable guarantees for both price and schedule compliance."

The Korean side also expressed regret over the delay in the final contract for the Czech nuclear power plant but stated that it would continue close communication with the Czech side to ensure the main contract is concluded as soon as possible. Industry Minister Ahn Dukgeun remarked, "The final contract has not fallen through; it is only temporarily delayed due to procedural reasons. With the Temelin 2 project coming up in five years, we intend to use this delay not as a waste of time, but as an opportunity to build trust in Korea's nuclear industry."