Negotiations for the construction contract of the Czech nuclear power project between Korea Hydro & Nuclear Power and the Daewoo Engineering & Construction-Doosan Enerbility consortium have ended, but the impact on Doosan Enerbility's overall nuclear business is expected to be minimal. The supply contract for major equipment remains intact, and even if a new construction supervisor is appointed, there is still a possibility for Doosan Enerbility to participate in the new construction framework. Korea Hydro & Nuclear Power (KHNP) also plans to maintain the original project schedule through the selection of a new construction firm.
According to industry sources on October 29, the negotiations for the construction contract of the Dukovany nuclear power plant in the Czech Republic, which had been ongoing with the Daewoo-Doosan consortium, concluded due to disagreements over key contract terms. KHNP has initiated the process to terminate the existing joint cooperation agreement with the consortium and is preparing for a bidding process to select a new construction firm.
The end of these negotiations is not expected to significantly affect Doosan Enerbility. The company is a supplier of reactors, steam generators, turbines, and generators, and it is also part of the construction consortium with Daewoo. The failed agreement pertains to the construction sector, while the previously signed contracts for reactor equipment and turbine generator supplies will remain in effect.
The supply contract for the Czech nuclear power project, signed by Doosan Enerbility with KHNP in December of last year, is valued at approximately 56 trillion won. The supply of major equipment, including reactors and steam generators, accounts for about 49 trillion won, while the turbine and generator supply is around 7 trillion won. In February of this year, Doosan Skoda Power, a subsidiary in the Czech Republic, also signed contracts for steam turbines to be supplied to the local nuclear power plant, continuing the follow-up procedures for contract fulfillment.
Moreover, the conclusion of negotiations with the existing consortium does not necessarily mean the final exclusion of Doosan Enerbility from the project. Even if a new construction supervisor is selected to replace Daewoo, Doosan Enerbility could still participate in the new consortium and continue its role in plant construction. Industry observers note that the selection of a new supervisor and Doosan Enerbility's participation in construction are separate issues.
KHNP plans to proceed with the construction firm replacement process while maintaining its existing construction and commercial operation goals. It is considering completing the selection and contract signing for a new construction firm by July of next year. The Dukovany nuclear power plant is scheduled to begin site preparation work in January 2028, with main construction starting in November 2029, and commercial operations for units 5 and 6 expected in 2039 and 2040, respectively. KHNP aims to minimize any gaps by continuing essential tasks such as design and permitting even before the construction firm is selected.
An industry official stated, "The supply contracts for major equipment and steam turbines from Doosan Enerbility will remain unchanged, and only the construction firm responsible for the nuclear power construction will be reselected. Therefore, the impact is expected to be limited."
* This article has been translated by AI.
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