KHNP reassures: Schedule for the Czech Dukovany project unchanged, construction set to begin in 2029

The agreed schedule for the construction of new nuclear units at Dukovany, including the start of construction in 2029, remains unchanged. The South Korean company KHNP said this today in response to a question from CTK. Following the recent collapse of talks with a Korean consortium on a construction contract, it is now drawing up an alternative plan for selecting a new construction contractor. The company also assured that work on key parts of the project would continue during the interim period.

On Thursday, KHNP announced the end of unsuccessful talks on a construction contract with a consortium of Korean companies, Daewoo Engineering & Construction and Doosan Enerbility. According to KHNP, the reason was differing positions on fundamental terms. The construction of new nuclear units at Dukovany is expected to be the largest Czech contract. The cost of building two reactors at Dukovany, at last year's prices, amounts to 407 billion crowns. According to plans published so far, construction of the first unit was due to begin in 2029, with completion expected in 2036.

"The agreed schedule, including the planned start of construction in 2029, remains unchanged. We are committed to meeting it, including each of the agreed milestones, and ensuring its successful delivery. We are therefore now drawing up an alternative plan for selecting a new construction contractor. At the same time, we will identify key project activities that must continue during the interim period and introduce appropriate measures to ensure they are carried out without interruption," KHNP said.

The Korean company also stated that it wanted to work closely with the project investor, the state-owned company Elektrárna Dukovany II (EDU II), on implementing the measures necessary to meet the schedule.

Industry and Trade Minister Karel Havlíček (ANO) also confirmed in recent days that preparations would continue. According to him, the Koreans are ready to negotiate with other construction contractors, and the Czech minister said there is no shortage of interested major companies. ČEZ CEO Daniel Beneš warned that the contract to build the units at Dukovany has a fixed price and schedule, and that failure to meet them would incur penalties.

Analysts described the news that talks on the construction contract had ended as a complication. In their view, the case mainly shows that it will be difficult to meet the originally agreed price and schedule. However, they said the project is not yet under existential threat.

Since signing the contract to build the Dukovany units last year, KHNP has concluded, for example, a contract for design and engineering work with Kepco Engineering & Construction, a contract to supply the nuclear steam supply system with Doosan Enerbility, and a contract to supply the turbogenerator with the same company.

In addition, according to KHNP, talks are continuing on a nuclear fuel supply contract with Kepco Nuclear Fuel and a contract with Kepco KPS to commission and maintain the power plant. Both contracts are expected to be concluded next year.