Fiala: KHNP-Westinghouse settlement will support Dukovany expansion in Czechia

The settlement of the dispute between KHNP and Westinghouse is good news for Czechia, Prime Minister Petr Fiala (ODS) said on the social network X. Cooperation between the two companies, he said, will support completion of the planned construction of new nuclear units at Dukovany, and he also sees it as an opportunity for Czech industry. The agreement was also welcomed by ČEZ, which is responsible for the Czech nuclear tender. It reiterated that it wants to conclude talks with the Koreans on the Dukovany contract by the end of March.

Under last year’s government decision, South Korean company KHNP is to build new nuclear reactors in Czechia. KHNP, however, had been involved in a long-running dispute with US company Westinghouse, which was also a bidder to build nuclear units in Czechia. The US company challenged the Koreans’ right to use the technology they also offered in the Czech tender. KHNP and Westinghouse announced an agreement today to settle these disputes. Westinghouse also confirmed that all legal disputes with the Koreans had been ended. According to the company, the agreement will enable global cooperation with the Koreans.

„Good news,“ Fiala commented on the announcement that the disputes had been settled.

„Future cooperation between the companies is a good opportunity for Czech industry and supports the implementation of the Dukovany expansion project, which will bring us closer to ensuring Czechia’s energy security,“ the prime minister added.

ČEZ, which is currently negotiating a final contract with KHNP for the construction of new units at Dukovany, also welcomed the agreement. „We have been confident all along that both sides would find a solution to the dispute. We are pleased that they have now done so. We are conducting talks with KHNP with a view to reaching an agreement by the end of March,“ ČEZ spokesman Ladislav Kříž told the Czech News Agency (ČTK).

Industry and Trade Minister Lukáš Vlček (STAN) also described the agreement as excellent news for the successful continuation of the Dukovany expansion project. „Another obstacle on the way has been removed,“ Vlček said on X.

Last summer, the government decided to build two new nuclear reactors at Dukovany. The first is expected to be completed in 2036. According to the cabinet, construction of both units is expected to cost 400 billion crowns at current prices. ČEZ is also expected to negotiate with KHNP an option to build two more reactors at Temelín.

The dispute between KHNP and Westinghouse was also reviewed by the Czech Office for the Protection of Competition (ÚOHS). French company EDF also appealed to the authority against the selection of the Korean company, protesting the conduct of the tender. The competition authority rejected their objections at first instance and is now examining appeals against the original decision. Until a final and binding decision is issued, the ban on signing a final contract with KHNP, which the authority previously imposed in the proceedings, remains in force.