Czech companies negotiate separately with KHNP on involving domestic industry in Dukovany

Czech industry and individual companies are negotiating with Korean company KHNP separately on taking part in the project to build new nuclear units at Dukovany, independently of the government and ČEZ. The result should be several specific agreements. However, companies are asking the government to actively support them in negotiations with the Koreans. Representatives of industry and business associations told the Czech News Agency (ČTK) in response to a question.

ČEZ, which is responsible for the nuclear tender, is currently negotiating with KHNP on a contract to build two nuclear units at Dukovany. Under the current schedule, the agreement should be signed at the end of March next year. Industry and Trade Minister Lukáš Vlček (STAN) told Czech Television at the weekend that a 60% share for Czech companies in the construction of the new units at Dukovany would probably not be enshrined in the contract between ČEZ and KHNP. However, he said, Czechia would press for KHNP to fulfil the commitment it made during the tender. The Korean company has also pledged to meet the target.

“As for industry involvement, separate direct negotiations are taking place between industry and KHNP. There is no single contract that would cover the needs of both industry and ČEZ. Czech industry will therefore be involved through specific contracts for particular parts and inputs of the project,” said Lenka Janáková, director of the legislation, legal affairs and analysis department at the Chamber of Commerce of the Czech Republic.

Bohuslav Čížek, director of the economic policy section at the Confederation of Industry of the Czech Republic, also confirmed this approach. “Industry will need to have its own specific contracts with KHNP,” he said.

Both, however, also urged the government to actively support the involvement of Czech companies. “The government must not underestimate the involvement of Czech companies and must engage very actively with KHNP on this. This is the contract of the century, and we need to maximise its impact on Czech GDP and open doors for Czech businesses to win many other contracts as well,” Čížek noted. The Chamber of Commerce also sees government support as essential.

The government decided in July to build two new nuclear reactors. It chose the bid from Korea’s KHNP over that of France’s EDF, while the other bidder, US company Westinghouse, had been excluded from the competition earlier. Both companies challenged the tender result at the Office for the Protection of Competition (ÚOHS), which has so far rejected their complaints in a non-final decision. However, a preliminary injunction remains in force, barring ČEZ from signing a contract with KHNP; it will expire only once a final decision has been issued.