EDF Files Lawsuit Over Bidding Process but Loses in Czech Court
A Czech court has ruled in favor of the Czech government and Korea Hydro & Nuclear Power (KHNP) in a lawsuit filed by Electricite de France (EDF) regarding the new construction project at the Dukovany nuclear power plant.
According to major foreign news outlets on June 25 (local time), the Brno District Court in the Czech Republic ruled against EDF in a lawsuit seeking to overturn the decision by the Czech antitrust office (UOHS) to dismiss EDF's objection.
EDF, after being eliminated from the shortlist of preferred bidders last year, filed an objection with the Czech competition authority (UOHS), claiming there were issues with the bidding process. However, UOHS dismissed the objection, stating there were no procedural flaws, leading EDF to file a lawsuit with the court.
Last month, the Brno District Court accepted EDF's request for a provisional injunction, preventing the signing of the final contract until a ruling on the main case. However, on June 4, the Czech Supreme Administrative Court overturned this injunction. As a result, KHNP and Dukovany II Nuclear Power Company (EDU II), a subsidiary of Czech power company CEZ and the ordering party, signed the final contract on the same day the injunction was lifted.
The Czech government selected KHNP as the preferred bidder for the construction of Units 5 and 6 at Dukovany in July last year. However, EDF raised objections through legal and administrative procedures, causing the final contract?originally scheduled for March this year?to be delayed.
EDF has also filed an objection with the European Union (EU), claiming that KHNP violated the Foreign Subsidies Regulation (FSR). The EU is currently reviewing whether to initiate an ex officio investigation.
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