Czech Industry Minister Preparing Response to Letter
Reflects Views of France, Which Lost in the Bidding Process
Amid the collapse of Korea Hydro & Nuclear Power's final contract signing for the new nuclear power plant construction project in the Czech Republic, a high-ranking European Union (EU) official from France has demanded that the Czech government halt the contract process.
According to European media outlet Euractiv on the 12th (local time), Czech Minister of Industry and Trade Jozef Sikela stated in an interview with Czech television that he had received a letter from EU Executive Vice-President for Industrial Strategy Stephane Sejourne and was preparing a response.
Minister Sikela did not disclose the specific contents of the letter but said it "reflects the perspectives and opinions of Electricite de France, which was eliminated in the bidding process."
After losing to Korea Hydro & Nuclear Power, Electricite de France filed a lawsuit in a Czech court, suggesting that the Korean company may have gained an unfair pricing advantage through government subsidies. On May 6, the Brno District Court in the Czech Republic issued an injunction prohibiting the final contract until a ruling is made in the main lawsuit.
In his letter, Vice-President Sejourne stated that he was collecting information related to extra-territorial financial support and argued that signing the final contract could jeopardize the EU's ability to effectively investigate whether subsidies were provided and to require corrective measures from the parties involved. According to AFP, the letter was sent on May 2, the same day Electricite de France filed its lawsuit with the court.
Vice-President Sejourne previously served as France's Minister of Foreign Affairs.
Minister Sikela commented on Vice-President Sejourne's French background, saying, "I don't think it's a coincidence."
The French government actively supported Electricite de France's bid for the nuclear power plant. In March last year, President Emmanuel Macron visited the Czech Republic and requested cooperation for the contract. The French government owns 100% of Electricite de France's shares.
Despite France's objections, Czech authorities insisted that the bidding process was conducted legally. Euractiv reported, "Czech power company CEZ, which oversees the project, plans to appeal the injunction, and the government is defending its decision," adding, "Officials claim that Electricite de France's proposal was much more expensive than that of Korea Hydro & Nuclear Power."
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