Hwang Ju-ho, president of Korea Hydro & Nuclear Power (KHNP), noted, "Although there will be delays and losses due to the failure to finalize the Czech main contract, there is nothing significantly different."
According to KHNP on the 9th, President Hwang held a meeting at Babi II on the morning of the 8th, stating, "We can finalize all practical preparations outside of the main contract," adding, "Since the Czech cabinet has also approved the main contract, I believe it will proceed well."
KHNP was originally scheduled to sign the main contract for the construction of two new reactors at the Czech Dukovany nuclear power plant, valued at 24 trillion won, on the 7th, but is currently hindered by Electricite de France (EDF). The final competitor, EDF, filed a request for a preliminary injunction against KHNP at the District Court in Brno, Czech Republic, resulting in a halt to the nuclear power contract signing.
In response, Daniel Beneš, president of ČEZ, said, "As a result of a transparent and objective evaluation of the bids, KHNP was superior in all aspects, including price and compliance with timelines," criticizing, "It seems that EDF is lobbying to prevent external companies from constructing nuclear power plants in Europe."
ČEZ plans to file a request to dismiss the preliminary injunction at the Czech Supreme Administrative Court next week, and the Czech cabinet has pre-approved the Dukovany nuclear power contract so that it can be signed with KHNP as soon as the preliminary injunction ruling is lifted.
President Hwang explained why KHNP can supply electricity at a lower price than Westinghouse or EDF, stating, "It is about how we have utilized our supply chain over the past 50 years of construction and that all procedures are well established," adding, "We already have all the materials needed for the Czech nuclear power plant (1000MW) and can fully utilize our supply chain."
He also expressed confidence that there would be no delays in construction like those experienced at the Barakah nuclear power plant in the United Arab Emirates. President Hwang stated, "The Barakah nuclear power plant experienced an extension of the contract period due to the client's requirements, which is not our fault," adding, "Our capability is to ensure that there are no cost overruns or delays."
President Hwang identified Norway and Sweden, which are attracting small modular reactors (SMRs) as next nuclear power exporting countries. Currently, local governments in both countries are showing movements to introduce SMRs to promote regional economic revitalization and energy independence.
President Hwang remarked, "Europe is a battlefield," noting, "If we try to penetrate the market in such a complex legal environment through bidding, KHNP may exhaust itself, so we are trying to enter the SMR market where they are asking us to come." He added, "Norway and Sweden currently maintain companies that will construct SMRs, allowing them to avoid legal issues arising from competition."
Meanwhile, President Hwang drew the line on the 1 trillion won additional construction cost dispute between KHNP and Korea Electric Power Corporation, stating, "It is not an international disgrace." The situation has arisen concerning the 1 trillion won additional construction cost issue that occurred during the construction of the Barakah nuclear power plant in the United Arab Emirates, with Korea Electric Power Corporation and its subsidiary, Korea Hydro & Nuclear Power, now set to settle the matter in international court.
President Hwang stated, "If it is an amount within 2 billion won, then the executives of each company can negotiate among themselves, but for larger amounts, it is not something that can be resolved through negotiations between corporate executives," noting, "Arbitration is the normal process." He further explained, "In all commercial activities, amounts of this significant scale must go through such (arbitration) procedures," and emphasized, "The claim of international disgrace does not apply at all."
President Hwang added, "If we delay further, creditors might view it as 'KHNP has no intention to receive payment,' and from KHNP's perspective, that would be seen as breach of trust," stressing that "the notion of 'international disgrace among parent companies' does not apply at all, and even among wealthy individuals, financial matters must be accurately accounted for. Isn't this happening often even within conglomerates?"