Industry associations: Collapse of Dukovany talks also poses a risk to Czech companies

The collapse of negotiations between South Korea’s KHNP and the construction consortium over a contract for work on two nuclear units at Dukovany risks disrupting the continuity of work that Czech companies have already invested in preparing for the project. At the same time, however, it creates an opportunity for significant involvement by domestic industry. The Energy Association of the Czech Republic and the Association of Construction Entrepreneurs of the Czech Republic said in a joint statement today. They called on KHNP to resolve the situation quickly.

Last week, KHNP announced the end of unsuccessful negotiations on a construction contract with a consortium of South Korean companies, Daewoo Engineering & Construction and Doosan Enerbility. KHNP said the reason was differing positions on key terms, and that it is now preparing an alternative plan to select a new construction contractor. The South Korean company also said the project schedule remains unchanged.

The associations noted that they had been involved in preparations for the project for eight years, including by supporting Daewoo E&C.

“Our shared goal must be safe, high-quality construction within a predictable framework that keeps the project on schedule and enables meaningful involvement by Czech industry. Our companies are ready to take responsibility for specific supply packages and actively help ensure the project continues without unnecessary delays,” said Josef Kotrba, executive director of the Energy Association.

The associations consider it essential that the current situation does not lead to further delays in preparations or jeopardize the project’s planned schedule. They therefore expect KHNP to present a concrete plan for the next steps as soon as possible, including a timetable for selecting a new construction contractor, the contractual model and arrangements for ensuring continuity in preparatory work.

“Complications in concluding the construction contract were already evident in the preceding period. The South Korean side had originally expected to sign this contract shortly after the main EPC contract. The lack of a contract covering construction work significantly limits Czech companies’ ability to begin full-scale preparations and mobilize the necessary capacity,” noted Jiří Nouza, president of the Association of Construction Entrepreneurs.

At the same time, the situation creates an opportunity for significant, direct involvement by Czech industry, the associations said. They pointed to the experience Czech companies have gained from energy and nuclear projects, as well as their knowledge of the local environment.

The associations therefore called for all other preparations to continue, including engineering work and construction elements such as the turbine hall.

The construction of new nuclear units at Dukovany is expected to be the largest contract in the Czech Republic. The cost of building two reactors at Dukovany, at last year’s prices, is 407 billion crowns. According to plans published so far, construction of the first unit should begin in 2029, with completion expected in 2036.