Czech government discussing several options for resolving Dukovany situation, says Výborný

The government is discussing several different options for how to proceed after the signing of the contract to build new reactors at the Dukovany Nuclear Power Plant with South Korean company KHNP was postponed, according to Agriculture Minister and Christian Democrats leader Marek Výborný. The Regional Court in Brno, which is ruling on French company EDF’s challenge to a decision by the Czech Office for the Protection of Competition (ÚOHS), has been urged to publish its ruling as soon as possible because of the potential damages. Výborný did not want to say which options ministers are considering. He said he supports the government entering talks with KHNP so that both sides can work together to find a solution. He told reporters today.

Whether KHNP’s offer to build nuclear units at Dukovany will be extended is uncertain. The company will have to assess any request from the Czech side, consider the circumstances and only then decide, Harry Chang, vice president of KHNP’s nuclear power plant project division in the Czech Republic, told Czech Television today. The current offer is valid until the end of June. “We are discussing several options for how to proceed; there are several of them,” Výborný said. In his view, KHNP’s offer is dramatically more advantageous.

Karel Havlíček, deputy chairman of the opposition ANO movement, said that although the opposition had criticised the low share of Czech participation contracted for the project, the government had had the opportunity to sign the contract immediately after the ÚOHS decision. Now, he said, it has to negotiate diplomatically. He also told reporters that, given the legal complexity, he does not consider it possible to quickly change the contract into an intergovernmental agreement.

The signing of the final agreement with KHNP was originally planned for 7 May, but the court blocked it with an interim measure the day before. It did so at EDF’s request; the company had challenged the antitrust authority’s decision in court. The authority had ruled that the tender was in order. The court has not yet ruled on EDF’s lawsuit. Prime Minister Petr Fiala (ODS) said this week that the final contract might not be concluded before the current government’s term ends. That will depend on the court’s decision. However, he said, the planned commissioning of the first reactor in 2036 is not yet at risk. Today, at a meeting of the Czech Chamber of Commerce, Fiala said he still hoped the current government would manage to conclude the Dukovany contract.

The prime minister said that if the court lifts the interim measure blocking the signing of the contract with KHNP, everything is ready to conclude the agreement as quickly as possible.

The government decided last July to build two new nuclear reactors. It chose South Korean company KHNP’s offer over that of French company EDF. It had earlier excluded another bidder, Westinghouse, from the tender.

The construction of new nuclear units in the Czech Republic is expected to be the country’s largest contract. At current prices, the cost of the currently preferred plan to build two reactors at Dukovany is 407 billion koruna.