KHNP Ends Czech Nuclear Plant Talks with Daewoo E&C

Negotiations between Korea Hydro & Nuclear Power and the Daewoo Engineering & Construction consortium over the construction contract for the new Dukovany nuclear power plant in the Czech Republic have come to an end. After 15 months of failed attempts to reach an agreement, the two sides could not bridge their differences over the construction cost settlement method.

The gap in the proposed construction costs between the parties exceeded 1 trillion won, which is around $750 million. The Czech client insisted on a 'lump-sum fixed-price contract' method, where the construction cost remains unchanged regardless of the project's scale. This method was initially agreed upon in 2022 and 2023 bids but was later contested by the consortium.

Daewoo Engineering & Construction claimed that Korea Hydro & Nuclear Power terminated the negotiations unilaterally, while Doosan Enerbility expressed its willingness to participate in a re-bidding process. Despite maintaining its original project plan, Korea Hydro & Nuclear Power faces concerns over potential schedule disruptions due to the contractor change.

The government emphasized its commitment to the Czech Republic by prioritizing timely completion. Executive Vice President Choi Il-kyung stated that efforts to reach an agreement for 15 months were unsuccessful, expressing regret over the situation. The primary disagreement was over the contract method, with the Czech client demanding a lump-sum fixed-price contract while the consortium preferred a different approach.