Industry minister says Czech court ruling delays nuclear deal signing, yet other procedures continue
Industry Minister Ahn Duk-geun enters the state council meeting at the Government Complex in Seoul, April 29. Yonhap
Industry Minister Ahn Duk-geun said Wednesday that a Czech court's decision to temporarily block a multibillion-dollar nuclear power plant deal with Korea will only delay the official signing, while other procedures will continue as planned.
On Tuesday, the regional court in Brno issued an injunction preventing the country's main electricity firm, CEZ, from signing the estimated 26 trillion-won ($18.6 billion) contract with a Korean consortium led by Korea Hydro & Nuclear Power (KHNP) until it reviews a legal complaint filed by France's EDF, a losing bidder in the tender.
"Only the formal contract signing has been postponed due to the administrative court's ruling, but all other procedures will proceed as scheduled," Ahn told reporters upon arriving in Prague. KHNP had been scheduled to finalize the agreement later Wednesday with Elektrarna Dukovany II (EDU II), a subsidiary of CEZ.
The Korean consortium was named the final winner last week, about nine months after it was selected as the preferred bidder for the project to build two 1,000-megawatt nuclear reactors at Dukovany Nuclear Power Plant, located some 200 kilometers south of Prague.
The deal would mark the largest public procurement project in Czech history.
"The Czech government clearly did not see this as a major obstacle and extended the invitation (for the official signing) based on that assessment," Ahn said. "It seems the court's view differs from that of the government."
Ahn insisted there could not have been any problem in the selection process, stressing that the Czech Republic, too, has done its "utmost to very carefully maintain its fairness, objectivity and transparency since it was a fierce three-way race between KHNP, EDF and Westinghouse."
The minister said CEZ is currently reviewing legal options and is expected to file an appeal, with details expected to be announced later in the day.
If finalized, the project would represent Korea's first overseas nuclear plant contract since 2009, when another KHNP-led consortium secured a deal to build the Barakah Nuclear Power Plant in the United Arab Emirates.
Ahn said he and other Korean delegates here will proceed with most aspects of their visit.
"All preparations aside from the official signing are going ahead as planned," he emphasized.
The Czech Republic has been pushing to reduce its reliance on fossil fuels and increase its use of nuclear energy, which currently accounts for around 40 percent of the national power supply. Prague aims to raise this share to over 50 percent in the coming years.
The two new reactors will be built alongside the four existing 510-megawatt units at the Dukovany nuclear power plant, which have been in operation since the 1980s. The first new reactor is expected to begin trial operations in 2036, with the second to follow approximately two years later.