Concerns are growing over potential delays in the Czech Dukovany nuclear power project following the breakdown of construction contract negotiations. However, Minister of Trade, Industry and Energy Kim Jeong-kwan has dismissed the possibility of the project being canceled. Korea Hydro & Nuclear Power (KHNP) plans to complete the termination process with Daewoo Engineering & Construction within a month and will begin selecting a new contractor.
During a meeting of the National Assembly's Industry, Trade, and Energy Committee on November 9, Minister Kim responded to a question from Chairman Kim Seong-won regarding the potential cancellation of the Czech project, stating, "It will not be canceled. I want to make that clear. The Ministry will work with KHNP and Team Korea to ensure its success."
Earlier, lawmaker Yoon Han-hong from the ruling People Power Party pressed for answers about possible delays in the project schedule following the breakdown of negotiations between KHNP and Daewoo. Yoon questioned, "Didn’t the negotiations end after 15 months due to a disagreement over construction costs of about 1 trillion won? Will Daewoo completely withdraw from Team Korea?"
In response, KHNP President Kim Hoe-cheon confirmed that the negotiations had ended and that the internal procedures for terminating the agreement were still pending. He estimated that this process would take about a month and expressed optimism about minimizing delays in the construction schedule, stating, "We believe it is still feasible to meet the timeline."
KHNP announced on October 29 that it had ended negotiations with the Daewoo-Doosan Energy consortium. The two sides could not reach an agreement on key terms, including construction costs, contract methods, and the scope of work.
KHNP plans to sign a contract with a new contractor through a competitive bidding process by July of next year. Until a new contractor is selected, the company aims to continue essential design and permitting work to minimize impacts on the overall project timeline.
However, lawmaker Yoon raised concerns about whether a new construction company could resolve the issues related to construction costs and contract terms that had previously stalled negotiations. He emphasized, "If Daewoo cannot proceed due to a 1 trillion won shortfall, how can another construction company take on the project? The government must actively manage the project schedule."
The division of responsibilities between ministries overseeing nuclear power exports and domestic nuclear and energy policies was also highlighted as a concern. While the Ministry of Trade handles nuclear exports, KHNP and nuclear policy fall under the Ministry of Climate, Energy, and Environment. Yoon pointed out, "The sense of responsibility felt by public enterprises differs from that of the ministries. If we fail to meet the timeline for the Czech project, it could harm our international credibility."
Chairman Kim Seong-won also questioned the government's accountability in managing the project. He asked, "If the Czech nuclear project is canceled, who will be responsible?" and called for a more proactive role from the Ministry.
In response, Minister Kim explained that there are legal limitations to the government's direct involvement in individual project disputes. He stated, "There are limits to our involvement. We are working on amending nuclear-related laws to establish a legal basis for government participation in disputes."
Regarding KHNP's decision to end negotiations, he noted, "It was a judgment to adhere to the procedures and timeline of the Czech project. KHNP respected the need to provide a clear signal by the end of October, which was set as the deadline for negotiations."
The government plans to finalize its relationship with the existing contractor while managing the selection of a new contractor and the project schedule. Minister Kim reiterated, "We will ensure that the project is not canceled, and we will work together with KHNP and Team Korea to push forward with the Czech nuclear project without delays."
* This article has been translated by AI.
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