Daewoo E&C seeks gov't mediation in dispute over Czech nuclear project

Seoul plans to introduce an emergency management system to ensure the Czech nuclear power plant project remains on schedule following the collapse of contract talks between Korea Hydro & Nuclear Power Co. (KHNP) and a construction consortium, the Ministry of Trade, Industry and Resources announced on Monday. The government intends to establish measures to maintain progress on the Czech project and prevent future delays, according to the ministry.

This decision follows Korea Hydro & Nuclear Power Co.'s termination of contract negotiations with a South Korean consortium consisting of Daewoo Engineering & Construction Co. and Doosan Enerbility Co. for the Dukovany nuclear power plant project last week, as they could not reach an agreement on crucial terms. The ministry is scheduled to convene its inaugural meeting on Monday to deliberate on subsequent actions.

Korea Hydro & Nuclear Power Co. pledged to formally end the negotiations and commence preparations for a new tender to appoint a construction contractor by July 2027, enabling construction to commence in November of that year. Industry Minister Kim Jung-kwan confirmed that the minister and vice minister will personally scrutinize key project matters on a weekly basis and implement essential measures as needed.

The Dukovany project, valued at approximately 25 trillion won (US$17.5 billion), entails the construction of two 1,000-megawatt APR1000 reactors, a South Korean-designed model, in the Czech Republic. A South Korean consortium led by KHNP secured the project last year. Following the negotiations' conclusion, KHNP will seek a new construction contractor through a forthcoming tender.