Czech government approves planned signing of KHNP deal for Dukovany

The government today approved the planned signing of the final agreement with South Korean company KHNP to build nuclear units at Dukovany. It did so in advance, in case signing the contract becomes possible. Prime Minister Petr Fiala (ODS) said this at a press conference after a cabinet meeting. He said he believes the court will rule on Dukovany as soon as possible.

The signing of the final agreement with KHNP was originally planned for today, but the Regional Court in Brno blocked it with an interim injunction on Tuesday. It ruled on a motion by French company EDF, which challenged a decision by the Czech Office for the Protection of Competition (ÚOHS) in court. The office had ruled that the tender was in order. The court has yet to rule on EDF's lawsuit. Elektrárna Dukovany II, the company responsible for the nuclear tender, will file an appeal against the injunction with the Supreme Administrative Court.

"It is clear to us: South Korean company KHNP submitted the best offer in the tender and also provided the strongest guarantees that its terms would be met," Fiala said regarding the approval of the agreement.

According to the prime minister, none of the competitors came close to the terms offered by KHNP. He said approval of the agreement could speed up the process of concluding the contract, ready for when the court allows it to be signed.

Fiala also stressed the importance of the project, saying that building new nuclear reactors in Czechia is essential for the future development of the domestic economy. "I believe the court is also aware of the significance of this matter and will do everything it can to rule as soon as possible," the prime minister said. Regarding EDF's lawsuit, he said he understood that the French company was defending its interests, but that the way it was doing so ran counter to the interests of Czech companies and citizens.

KHNP won last year's nuclear tender in Czechia, with the government preferring its bid to those of EDF and Westinghouse. The first unit at Dukovany is expected to be completed in 2036. The construction of new nuclear units in Czechia is set to be the largest domestic contract in history. At current prices, the cost of the currently preferred plan to build two reactors at Dukovany is 407 billion korunas.