INTERVIEW Czech FM confident nuclear plant deal will overcome legal hurdles
Czech Foreign Minister Jan Lipavsky discusses issues surrounding the recent Korea-Czech nuclear power plant deal during an interview with The Korea Times in Seoul, Tuesday. Korea Times photo by Choi Won-suk
The Czech Republic's top diplomat expressed optimism that Korea and the Eastern European nation will finalize a 24 trillion won ($17.9 billion) nuclear power plant project in the first half of 2025 as planned, despite legal challenges from U.S. and French rivals.
Czech Foreign Minister Jan Lipavsky reaffirmed the country’s trust in Korea regarding the project in which Korea Hydro & Nuclear Power (KHNP) was selected as the preferred bidder to build two nuclear plants.
"First of all, it's a huge achievement that KHNP was selected as a preferred bidder, and I hope that the negotiation will be successful and the deal will be sealed as the schedule says," Lipavsky said during an exclusive interview with The Korea Times, Tuesday, during his visit to Seoul.
His remarks come amid concerns about the project's progress, following an appeal filed last month by Westinghouse Electric, a U.S. nuclear energy firm, and French company EDF, with the Czech Office for the Protection of Competition. They argued that KHNP’s selection violated tender principles, prompting the antitrust authority to officially investigate the appeal.
Separately from the appeal, Westinghouse has raised an intellectual property issue with KHNP. Westinghouse claims that its technology is being used in the type of nuclear plant KHNP is attempting to export to the Czech Republic and asserts that the Korean company does not have the right to use that technology in other markets without Westinghouse’s consent.
"Of course, this matter is a sensitive one, but I'm sure that the Czech government designed the process in such a way that it's proof against such legal steps," he said.
The minister was cautious about predicting the antitrust authority's decision, but said, "From the very beginning, it was clear by which set of rules the whole process will be ruled. So, I would be very surprised if that would bring a change into the whole thing."
Instead, Lipavsky expressed confidence in Korea and KHNP, citing the rigorous criteria used in the selection process.
"It is by all calculations the most profitable one. Also, it scores well in other domains like security of supply chains. Seeing the power plant in the United Arab Emirates (UAE) as proof, it also showed good results. So, it was multiple criteria which led to the company and the Czech government conclusion that KHNP will be selected as a preferred bidder, and I hope that the deal will be successfully sealed."
The deal is expected to be finalized by the first quarter of next year and mark Korea's second nuclear power plant export, following a 2009 project in the UAE.
Regarding the project's contribution to the country’s long-term energy security, Lipavsky emphasized the importance of stable and sustainable energy sources.
"We are a manufacturing country. We have a lot of heavy industry. We need electricity for our economy to be working,” he said.
"So, a nuclear power plant in our geographical circumstances creates a bedrock for electricity production in combination with renewable resources through solar power plants and wind energy. But a nuclear power plant will always be there. It's very reliable, it's very safe, it's ecological, so we have to rely on that. Therefore, we are looking for ways to replace the aging nuclear power plant with new reactors."
Dukovany Nuclear Power Station in the Czech Republic / Courtesy of Korea Hydro & Nuclear Power
Yoon's visit to Prague
The foreign minister discussed the upcoming summit between President Yoon Suk Yeol and Czech President Petr Pavel in Prague later this month, highlighting the key issues on the agenda and the anticipated outcomes of the meeting.
The minister emphasized that the summit's primary focus would be on economic matters and expressed optimism about the potential of the meeting to foster significant bilateral agreements.
“I hope that the Czech and Korean side will sign a lot of important documents. We will have quite a good set of documents being signed. I don’t want to go into specifics because there are still negotiations going on,” Lipavsky said.
“We have to cooperate and try to work on the sectors where the future is the brightest. And I’m speaking about artificial intelligence, cybersecurity, medicine, and things like transportation, defense cooperation.”