Korea Hydro & Nuclear Power is expected to finalize the 24 trillion won contract for the Czech Dukovany nuclear power plant in the near future. The process was delayed due to a complaint filed by Electricité de France (EDF) to the Czech Antimonopoly Office (UOHS), but it has now cleared the final hurdle as the complaint was dismissed.
On the 25th, the UOHS announced the dismissal of EDF's appeal against the selection procedure the day before. Last July, when KHNP was selected as the preferred negotiator for the Czech new nuclear power project, EDF and Westinghouse filed complaints stating there were flaws in the Czech public procurement bidding process and that KHNP was incapable of fulfilling the contract. In January of this year, Westinghouse agreed to suspend its intellectual property rights dispute with KHNP and KEPCO, thereby withdrawing its appeal. Only EDF remained in the appeal process, which has now been dismissed.
A green light has been given for the final contract of the Czech new nuclear power project. KHNP and ČEZ are currently engaged in final negotiations over the details. The contract documents of both sides have been essentially coordinated, with current discussions focused on operational details regarding the Power Purchase Agreement (PPA) after the nuclear power plant begins operations. The PPA is a contract between electricity users and power producers to purchase electricity at a set price for a specified period.
According to local media, KHNP and CEZ have nearly finalized negotiations on the extent to which Czech corporations will participate in the nuclear power construction project. The specific participation ratio and whether to include these details in the contract have not been disclosed.
The Czech government has demanded that the contract guarantee about 30% participation from local corporations in the design, procurement, and construction (EPC) processes, and 60% participation during construction and operation. The nuclear power industry believes that if such terms are included in the contract, it could constitute unfair transactions and lead to legal disputes between countries.
KHNP aims to maximize the participation of local corporations. Doosan Škoda Power, a Czech subsidiary of Doosan Enerbility, is expected to supply the main equipment, namely the generators, and corporations in the Czech Republic that meet technical standards are likely to supply other materials.
KHNP is negotiating with the goal of signing the main contract as soon as possible. Earlier, it reached an agreement with Westinghouse regarding the intellectual property rights dispute as a condition for splitting the work for the Czech new nuclear power project. Besides Doosan Škoda Power, KEPCO KPS (maintenance and management), and Daewoo E&C (construction), the "Team Korea" has also begun preparing for business following the main contract.
A KHNP official noted, "The date for signing the contract related to the Czech new nuclear power project has yet to be determined, and internal procedures on the Czech side are currently underway."