Czech Nuclear Deal Breakdown Sends Daewoo E&C, Doosan Enerbility Shares Tumbling
The breakdown of construction contract negotiations for the 27 trillion won, or approximately $20.23 billion, Dukovany nuclear power project in the Czech Republic has dealt a blow to “Team Korea,” the Korean consortium assembled to pursue the project. Korea Hydro & Nuclear Power Co. (KHNP) has forma
The construction contract negotiations for the 27 trillion won Dukovany nuclear power project in the Czech Republic have broken down, dealing a blow to the Korean consortium known as "Team Korea." The consortium, comprising Daewoo Engineering & Construction (E&C) and Doosan Enerbility, was set to handle the project's construction.
Korea Hydro & Nuclear Power Co. (KHNP) has formally ended talks with the consortium, citing failure to agree on key terms. Despite working-level discussions and various negotiation levels, the parties could not resolve disputes over construction costs and risk allocation. The breakdown began in April 2024 when KHNP submitted its bid based on its cost estimates, without agreeing on the contract amount and terms with Daewoo E&C.
This has raised concerns over the project's execution and sent shares of both companies plummeting. KHNP plans to terminate its joint cooperation agreement with the consortium and seek a replacement contractor by July 2027, while handling essential tasks directly to minimize disruption. Daewoo E&C and Doosan Enerbility, both experienced in nuclear construction, now face potential delays and increased costs in securing a new partner for the Czech project.
Investors reacted sharply, with Daewoo E&C shares dropping 21.16% and Doosan Enerbility falling 11.24%.
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