Czech CEZ chief: Contract with Korean firm KHNP has a fixed price and schedule

The contract with Korean firm KHNP has a fixed price and schedule, with penalties for failure to meet them. ČEZ CEO Daniel Beneš told journalists today. He was responding to Thursday’s news that KHNP had ended talks without an agreement on a construction contract for the new nuclear units project in Dukovany with a consortium of Korean firms Daewoo Engineering & Construction and Doosan Enerbility. KHNP said the reason was differing views on key terms, and that the company would now consider its next steps.

"This definitely cannot be played down. It is significant news. If this is the end, perhaps it is just price negotiations playing out in the Korean media; I cannot say yet," Beneš said.

He added that the news was still very fresh and that, according to the information he had, the work schedule was not at risk. "For the Czech side, we have to make sure that the contract is fulfilled: it has a fixed price, a fixed schedule and penalties for failure to meet them," Beneš said.

The construction of new nuclear units in Dukovany is expected to be the biggest Czech contract of its kind. At last year’s prices, the cost of building two reactors in Dukovany is 407 billion crowns. Under the plans published so far, construction of the first unit was due to begin in 2029, with completion expected in 2036.

Since signing the contract to build the Dukovany units last year, KHNP has signed, for example, a contract for design and engineering work with Kepco Engineering & Construction, a contract to supply the nuclear steam supply system with Doosan Enerbility, and a contract to supply the turbine generator with the same company.

KHNP also said that talks are continuing on a nuclear fuel supply contract with Kepco Nuclear Fuel and a contract with Kepco KPS to commission and maintain the power plant. Both contracts are expected to be signed next year.