KHNP to prepare a binding offer for four units; EDF also welcomes expansion of Czech tender

South Korean company KHNP, one of the bidders for the construction of a new nuclear unit at Dukovany, will prepare a new binding offer for four nuclear units. It respects the government’s decision to expand the tender and will adjust to it. KHNP told the Czech News Agency (ČTK) today in response to a question. French company EDF is also preparing for the next phase of the nuclear tender and welcomed its expansion to more units, as it said on Wednesday evening. Westinghouse, which will not continue in the next phase of the competition, has so far declined to comment on the government’s decision.

On Wednesday, the government invited French company EDF and South Korea’s KHNP, which are bidding to build a nuclear unit at Dukovany, to submit binding offers to build up to four new reactors at Dukovany and Temelín. North American company Westinghouse will not continue in the next part of the tender, as its offer did not meet the requirements, according to the government.

„KHNP respects the Czech government’s decision to build additional nuclear units. We will make every effort to submit a new binding offer for four units in accordance with the instructions and timetable set by the project owner,“ KHNP told ČTK today.

The company noted that it had previously assessed the possibility of building additional units in line with the investor’s requirements, and submitted a non-binding offer in October last year alongside its original offer to build one unit at Dukovany. „We are therefore able to submit a competitive offer in line with the project owner’s new instructions,“ the South Korean company added today.

EDF also plans to take part in the next phase of the tender and welcomed the government’s invitation on Wednesday evening. „EDF also welcomes the Czech government’s decision to launch consultations for a total of up to four new nuclear units. This decision shows that the Czech authorities are aware of the industrial and economic benefits of a fleet-based approach. EDF looks forward to working with ČEZ and the Czech government in the next stages of the selection process,“ said Roman Zdebor, head of EDF’s Czech branch.

The government did not invite North American company Westinghouse to take part in the next phase of the competition. Its original offer did not meet the tender requirements, according to the cabinet. One of the main problems, according to Industry Minister Jozef Síkela (STAN), was that the offer was not binding and therefore could not be compared with the others during the evaluation. The government also said that Westinghouse’s offer did not clearly identify the entity responsible for the quality of the work.

Three bidders entered last year’s tender for a new unit at Dukovany: France’s EDF, South Korea’s KHNP and North America’s Westinghouse. In addition to their offers for a new unit at Dukovany, the bidders also submitted non-binding offers last year to build three more reactors. According to Prime Minister Petr Fiala (ODS), an analysis of these offers showed that building multiple plants could be up to 25 percent more cost-effective than building just one unit. He did not disclose the prices offered. Síkela said the need to build more reactors also stems from current developments in the domestic energy sector, which are expected to include a sharp increase in consumption and the phase-out of sources such as coal.