KHNP ends key talks on Czech Dukovany project, seeks new construction contractor

Korean company KHNP has ended negotiations without an agreement on a construction contract for the new nuclear units project at Dukovany with a consortium of Korean companies Daewoo Engineering & Construction and Doosan Enerbility. KHNP said the reason was differing positions on fundamental terms and that it would now consider its next steps. KHNP informed the Czech News Agency (ČTK) about the matter today. The company has not yet said whether the failed negotiations will affect the construction schedule or cost. According to Industry and Trade Minister Karel Havlíček (ANO), the project schedule is not at risk, and KHNP is prepared to negotiate with other interested parties.

"In view of the construction consortium's position and in the interests of ensuring the stable delivery of the entire project, KHNP has decided to formally end negotiations on the construction works contract. In response, KHNP is carefully assessing the necessary follow-up measures to minimise any potential impact on the project. These include initiating the process to terminate the existing cooperation agreement with the construction consortium and preparing a new tender for a construction contractor," the Korean company said today.

It also stressed that it is working to ensure continuity in key parts of the project during the transition period. This will include measures allowing the Korean company to carry out some steps directly.

However, Havlíček said preparations for the project were continuing and that this would not lead to any major changes for the Czech Republic. "I am in contact with the Korean minister, who confirmed to me that construction and its schedule are not at risk at this point," Havlíček told ČTK today. KHNP is also prepared to negotiate with other construction contractors, and according to the Czech minister there is plenty of interest from large companies. "We are leaving this to the Korean side; they are responsible for the overall delivery and for ensuring that everything is completed on time," he added.

Petr Závodský, CEO of project investor Elektrárna Dukovany II (EDU II), said the decision had been made by KHNP, which is looking for another construction contractor and remains subject to all obligations under the signed contract. "EDU II will do everything it can to ensure that this step does not affect the project schedule," Závodský added.

The construction of new nuclear units in the Czech Republic is expected to be the largest domestic contract ever. The cost of building two reactors at Dukovany, based on last year's prices, is 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.

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.

KHNP also said that negotiations 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.