Daewoo-Doosan Push Back on Czech Nuclear Talks
Conflict has erupted within “Team Korea,” the group leading the Czech Republic’s new nuclear power plant construction project, over a construction contract. After Korea Hydro & Nuclear Power Co., Ltd. (KHNP), the prime contractor, declared that negotiations on a subcontract with the construction con
A dispute has erupted within "Team Korea," the group spearheading the Czech Republic's new nuclear power plant construction project, over a construction contract. Korea Hydro & Nuclear Power Co., Ltd. (KHNP), the prime contractor, announced on Oct. 29 that negotiations for a subcontract with the construction consortium had broken down, prompting strong objections from the builders.
The consortium, comprising Daewoo Engineering & Construction Co., Ltd. and Doosan Enerbility Co., Ltd., vehemently protested, claiming the terms were unreasonable and jeopardized the survival of private companies.
The core issue between the two parties is the allocation of increased construction costs due to design changes. The construction consortium argues that it should not be required to absorb the additional expenses without a corresponding adjustment in construction costs, especially since it does not meet global standards to act as a simple constructor without participating in the design process. They stressed that KHNP changed and presented the subcontract conditions on Oct. 7 without providing adequate time for review.
The consortium formally requested an extension of the negotiation deadline to Dec. 31 this year, but their request was denied. A spokesperson for the consortium criticized KHNP, stating that the prime contractor's revised proposal posed significant risks that threatened the survival of private companies. They also accused KHNP of an attitude that would only lead to negotiations if their proposal was accepted, which contradicted the principle of good faith.
The construction consortium is urging KHNP to adopt a more forward-looking approach in negotiations, citing its role in supporting private-sector diplomacy since being chosen as a construction partner in 2018. This includes building local networks and carrying out social contribution activities. The consortium is urging KHNP to revisit the negotiations from a broader perspective for the national interest and the smooth execution of the project, while also seeking response measures moving forward.
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