The Czech Supreme Administrative Court sided with Korea Hydro & Nuclear Power (KHNP) and the Dukovany II Nuclear Power Plant (EDU II), which is under the Czech Energy Company (CEZ), and revoked the preliminary injunction. This ruling is expected to facilitate the prompt finalization of contracts between KHNP and CEZ.
On the 4th (local time), the Czech Supreme Administrative Court accepted KHNP and EDU II's appeal and announced the cancellation of the preliminary injunction that prohibited the final contract. This allows for the construction contract for the two new Dukovany nuclear reactors, which were blocked by Electricité de France (EDF), to proceed.
The Supreme Administrative Court found the preliminary injunction unlawful based on public procurement precedents and judged that some aspects of the case could not even be reviewed. It mentioned that the overall benefits enjoyed by Czech society are more important than the interests of some participants involved in the contracting process. The court also noted that the likelihood of EDF winning is low and that swiftly concluding contracts would be beneficial to the public.
The Supreme Administrative Court issued a ruling that is contrary to the decision made by the Brno District Court, which had granted EDF's preliminary injunction. KHNP was scheduled to sign a construction contract with EDU II on the 7th of last month, but EDF applied for a 'contract prohibition' injunction the day before to block it. Consequently, the first hearing regarding the lawsuit filed by EDF against the Czech Antimonopoly Office (UOHS) was scheduled to take place on the 25th. The trial is expected to proceed as scheduled.
With this decision by the higher Supreme Administrative Court, the finalization of contracts between KHNP and the ordering party, EDU II, is expected to accelerate. The Czech government had previously pre-approved the contract for the two new Dukovany nuclear reactors so that a contract could be signed as soon as the court revoked the preliminary injunction.
Local politicians are also welcoming this ruling and recommending a swift conclusion of the contract. Czech Prime Minister Petr Fiala stated, 'If we do not build new nuclear reactors, the future of the Czech Republic will not be bright. We must negotiate to maintain the contract conditions with Korea.'
A KHNP official said, 'We welcome the Supreme Administrative Court's decision to revoke the preliminary injunction. We expect to conclude the contract promptly.'