KHNP and the Daewoo Engineering & Construction and Doosan Enerbility consortium have concluded negotiations regarding the construction of the Czech Dukovany nuclear power plant without reaching an agreement. The failure to finalize the construction cost and contract terms has prompted KHNP to initiate the process of selecting a new contractor, aiming to finalize the contract by July.
On October 29, KHNP stated, "We intend to conclude negotiations for the construction contract for the Czech Dukovany nuclear power plant with the contractor due to differences in key contract terms."
At the time of the bid, KHNP participated as part of 'Team Korea' alongside Korea Electric Power Corporation, Doosan Enerbility, Daewoo Engineering & Construction, Korea Hydro & Nuclear Power Fuel, and KEPCO KPS, agreeing to supply the entire nuclear power construction project, including engineering, procurement, construction (EPC), commissioning, and nuclear fuel supply.
Since signing the main contract with the Czech contracting authority in June of last year, KHNP has engaged in negotiations with the contractor for approximately 15 months. This included 78 working meetings, 11 dispute resolution committee sessions, and two CEO meetings, but the parties could not reconcile their differences.
The core issues at stake were construction costs, contract methods, and the scope of work. KHNP proposed a contract method that would finalize the total construction cost based on the quantities at the basic design stage. In contrast, the contractor sought to base the adjustments for increased quantities on the detailed design stage.
During negotiations, KHNP adjusted the construction costs upward, assuming increases in the baseline quantities, and proposed a compromise that would finalize the contract amount at the time of basic design approval. However, KHNP explained that they could not reach a final agreement due to differences over key contract terms.
KHNP plans to initiate separate procedures to terminate the joint cooperation agreement with the current contractor and begin the selection of a new contractor. A competitive bidding process based on the National Contract Law is being strongly considered.
While specific timelines have not been finalized, KHNP intends to hold a pre-bid briefing for potential contractors in January, issue a bid announcement in April, and complete the selection of the winning bidder and contract signing by July. Daewoo Engineering & Construction and Doosan Enerbility may also participate in the new bidding if they meet the qualification requirements.
A concern remains regarding potential delays in the project schedule due to the change in contractors. The Dukovany nuclear power plant is scheduled to begin site preparation work in January 2028 and commence full construction in November 2029, with commercial operation of Unit 5 targeted for April 2039 and Unit 6 for April 2040.
In relation to this, a KHNP official stated, "We plan to identify essential tasks in design and permitting that must continue until a new contractor is selected and establish a system for executing these tasks. We will carry out tasks such as auxiliary facility design and heavy transport route design through separate contract awards."
Despite the breakdown in negotiations with the contractor, other cooperation agreements remain intact. KHNP signed a comprehensive design service contract with Korea Electric Power Corporation in December last year and a supply contract for reactor equipment and turbine generators with Doosan Enerbility. Negotiations are ongoing for contracts related to nuclear fuel supply and commissioning and maintenance services involving Korea Hydro & Nuclear Power Fuel and KEPCO KPS, with a goal of concluding these agreements next year.
KHNP emphasized, "We will work closely with the government, contracting authority, and partners to minimize the impact on the main contract and proceed with the project as originally planned."
* This article has been translated by AI.
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