Press Conference Held in Prague on the 8th
On the 8th (local time), Hwang Jooho, President of Korea Hydro & Nuclear Power (KHNP), stated, "Except for the final main contract, we have signed everything else, so we will complete all practical preparations in advance to be ready to proceed."
That day, during a meeting with reporters in Prague, Czech Republic, President Hwang said, "Since the Czech Cabinet has approved all aspects of the contract, I expect this Czech nuclear power project to proceed smoothly," expressing his optimism.
Previously, on the 6th, the Brno District Court in the Czech Republic issued a provisional injunction suspending the final signing of the nuclear power plant construction contract between EDU II, a subsidiary of Czech energy company CEZ, and KHNP, which had been selected as the preferred bidder for Dukovany Units 5 and 6. As a result, the final contract, originally scheduled for the 7th, was postponed. However, the Czech government pre-approved the new nuclear power plant contract between CEZ and KHNP so that the contract can be signed immediately once the court's provisional injunction is lifted.
President Hwang commented, "The failure to sign the contract is very disappointing, as we have worked hard for eight years and it was something that could give hope to our people, but now it is delayed. I am very sorry," adding, "There are various issues, but the Czech government and CEZ are preparing responses, and we are also working to support the Czech side's efforts, so I expect things will be resolved well soon."
The Czech side estimates that if the final contract for Dukovany Units 5 and 6 is delayed by several months, losses amounting to several hundred million Czech koruna (equivalent to tens of billions of won) could occur. The Korean side is also expected to inevitably incur damages. Regarding this, President Hwang explained, "If we had signed the contract and deployed all personnel yesterday (the 7th), we could have proceeded while settling the costs, but since the contract is delayed, we need to maintain a certain level of manpower. Although we can anticipate some losses from these factors, it is only possible to make predictions once the outcome (the timing of the final contract) becomes clear."
On the 6th (local time), a view of Dukovany Nuclear Power Plant Units 1, 2, 3, and 4 in the Czech Republic. Units 5 and 6 are planned to be constructed near the existing nuclear power plant site. (Photo by Ministry of Trade, Industry and Energy Joint Press Corps)
President Hwang also stated that KHNP plans to continue its cooperation with Westinghouse in the United States for this Czech nuclear power project. He said, "For the past 50 years, we have continuously cooperated with Westinghouse in building nuclear power plants," and added, "For this Czech project as well, we will collaborate at the level of the Barakah Nuclear Power Plant in the United Arab Emirates (UAE)."
KHNP is also seeking to expand into countries such as Norway and Sweden. Earlier this January, KHNP signed a memorandum of understanding (MOU) with private small modular reactor (SMR) developers in these countries to establish a new framework for cooperation. President Hwang explained, "I recently visited Norway and Sweden, and I saw that very solid project developers, in consultation with local governments, have designated several sites and are announcing, 'We will build a nuclear power plant here,' and inviting SMR companies to participate. We intend to move in the direction that meets the needs of the demand side."
Regarding the dispute with Korea Electric Power Corporation (KEPCO) over additional construction costs for the Barakah Nuclear Power Plant, which has now moved to international arbitration, he said, "This is a normal business procedure." KHNP recently filed for arbitration with the London Court of International Arbitration (LCIA), requesting a settlement of additional construction costs amounting to $1 billion (approximately 1.4 trillion won) incurred during the Barakah project.
President Hwang stated, "Because the governing law of the contract between KHNP and KEPCO, in anticipation of possible disputes, is English law, we have gone to the LCIA. In commercial activities, disputes of this scale go through such procedures. If we delay further, the arbitration tribunal may see that KHNP has no intention of collecting the money, which could be regarded as a breach of trust."
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