KHNP undeterred by Czech nuclear project halt

Korea Hydro & Nuclear Power (KHNP) President and CEO Whang Joo-ho speaks during the groundbreaking ceremony for Shin Hanul Nuclear Reactors 3 and 4, as well as to celebrate the completion of Shin Hanul Nuclear Reactors 1 and 2, at the KHNP's Hanul nuclear power plant site in Uljin, North Gyeongsang Province, Wednesday. Yonhap

By Ko Dong-hwan

• Published Oct 31, 2024 3:43 PM KST
• Updated Nov 1, 2024 12:13 AM KST

Korea Hydro & Nuclear Power (KHNP) remains confident despite the Czech government's decision to pause a deal to construct two nuclear power plants, believing this will not impact plans to finalize the agreement by March.

The Czech ambassador to Seoul echoed that sentiment, explaining that the temporary hold — prompted by petitions submitted by American energy company Westinghouse and France’s EDF, which questioned KHNP's bid eligibility — is merely a precautionary measure, typical in large-scale projects.

In July, the Czech government selected a consortium led by KHNP as the preferred bidder to construct two nuclear reactors in Dukovany.

KHNP said the Office for the Protection of Competition (UOHS), the antitrust agency in the Czech Republic, accepted the petitions in line with the authority's standard procedures. The Korean company emphasized that the outcome of the evaluation of these petitions will not affect the anticipated finalization of the deal between the Czech government and the KHNP consortium.

“Our negotiated deal with the Czech government and CEZ Group will proceed with plans to sign the contract and finalize the deal in March regardless of the UOHS' conclusion regarding the petitions,” KHNP said.

CEZ, a major Czech utility company, had its subsidiary Elektrarna Dukovany II (EDU II) tender a bid for the Dukovany nuclear power plant project in 2022.

“KHNP and Team Korea will keep in close touch with our Czech counterparts," the Korean company added.

CEZ spokesperson Ladislav Kriz also told a Czech media outlet on Thursday that he expected the petitions to be addressed as a standard procedure. He noted that the Czech antitrust body typically suspends bid projects in similar cases, mentioning that UOHS had done so over 120 times in the past year. He added that, given the complexity of the latest petition case, the review might extend beyond UOHS’s standard legal period of 60 days.

“We expect the deal won’t be delayed from the end of March when we'll sign the contract,” Kriz said.

Officials in the Czech government have also downplayed the suspension of the deal.

Minister of Industry and Trade Lukas Vlcek told another Czech media outlet on Wednesday (local time) that suspending a bid process occurs regularly in large-scale and critical projects like the Dukovany nuclear power plant. UOHS also mentioned on its social media platform on Thursday that evaluating a public bid project typically involves such measures occurring dozens of times each year, emphasizing that the implications should not be exaggerated.

Czech Ambassador to Korea Ivan Jancarek also told The Korea Times that he “agrees with what the Czech minister, UOHS and KHNP have said about the matter.”

A delegation of 60 Czech representatives, including technical experts from EDU II and high-ranking officials from CEZ, will start a two-week visit to Seoul on Nov. 11 to discuss detailed steps regarding the project with KHNP, including the budget. The project is valued at approximately 24 trillion won ($17.4 billion).

“The Czech delegation's Seoul visit indicates a sign that the bilateral deal is sailing smoothly,” an industry official said.

In September, President Yoon Suk Yeol visited the Czech Republic to express support and strengthen collaboration on nuclear power initiatives. If finalized, the deal will represent Korea's second nuclear power plant export, following a project commissioned by the United Arab Emirates in 2009.