Czech Prime Minister Fiala: Government will sign Dukovany contract once it is ready

Prime Minister Petr Fiala (ODS) rejected a call by the opposition ANO movement for his government to leave the signing of the contract to build new units at the Dukovany Nuclear Power Plant to the next cabinet. He would sign it as soon as the contract was agreed, Fiala told reporters at a press conference in Paris today after a summit of countries supporting Ukraine. Negotiations are difficult, he said, but there is no reason to wait. The contract with South Korea’s KHNP was expected to be signed by the end of March.

At a press conference today, ANO deputy chairman Karel Havlíček supported the call by pointing to what he said was the still insufficient share of the project contracted to Czech companies. “We will not delay anything, and we will not wait for any elections or a new government. As soon as the contract is agreed—which requires complex negotiations—we will sign it, I can promise that,” Fiala said. He did not specify a date.

Fiala said the cabinet is doing everything it can to sign the contract with the Koreans, which he said sets it apart from previous governments in which ANO had “delayed the development of nuclear energy in Czechia by at least ten years.” He cited the decision not to continue preparations for completing the Temelín Nuclear Power Plant. Havlíček then delayed the Dukovany tender, he said, “probably so he could bring (Russian company) Rosatom into it.”

At the beginning of the month, Minister of Industry and Trade Lukáš Vlček (STAN) said that a 20% participation by Czech companies in the project had so far been guaranteed. According to Havlíček, only 18% of production in Czechia has been secured, and the government should continue negotiating patiently until it reaches at least 50%. He said that achieving this by autumn was technically unfeasible.

Vlček said that the Czech side is seeking to secure 60% participation by Czech industry and wants assurances from the Korean side, before signing the so-called EPC contract (a turnkey technology contract covering design, production, installation, commissioning and subsequent maintenance), that Czech suppliers will be involved in at least 30% of the project.

At the end of February, KHNP representatives said at the Czech-Korean Nuclear Industry Conference in Prague that the company still expects Czech suppliers to account for 60% of the construction of the new nuclear units at Dukovany. Czech companies are expected to reach this share by 2039, when both planned units at Dukovany are due to be completed. Representatives of Czech industry have voiced concerns in recent weeks about whether this target can be met, as no binding cooperation agreements have yet been signed.

Today, KHNP opened a centre in Prague that will provide Czech suppliers with information about individual contracts for the construction of the new nuclear units at Dukovany. The Korean company said setting up the centre was part of its commitment to achieve the aforementioned level of Czech company participation in the project. The company’s engineering partners are also to set up support centres in Czechia.