Korea Hydro & Nuclear Power (KHNP) has categorically denied allegations from the Daewoo Engineering & Construction labor union that it preselected a specific large construction company as the new contractor for the Dukovany nuclear power plant project in the Czech Republic. KHNP also refuted claims that the negotiations ended unilaterally.
On November 10, KHNP issued a statement asserting, "There is no fact that a specific construction company was preselected as the new contractor."
Previously, the Daewoo Engineering & Construction branch of the National Construction Workers' Union held a press conference at the National Assembly, alleging that KHNP intended to transfer construction rights to a specific large construction company before the negotiations for the construction contract concluded. They claimed to have received reports that some subcontractors were contacted by another large construction company regarding preparations for the Czech nuclear project before the announcement of the negotiation's end.
In response, KHNP explained that it plans to select a new contractor fairly, considering relevant laws, project conditions, and the feasibility of contract execution. However, it added that it could not confirm whether individual construction companies were preparing to participate in the project or had contacted subcontractors in advance.
KHNP also addressed the claim that the negotiations ended unilaterally. According to KHNP, the Czech client initially requested that the construction contract be finalized by the end of September. However, KHNP shared with both the Czech side and Daewoo Engineering & Construction its intention to continue negotiations until the end of October to secure sufficient negotiation time.
KHNP emphasized that over the past 15 months since the main contract was signed in June of last year, it held a total of 91 meetings, including two CEO meetings, 78 working-level meetings, and 11 dispute resolution committee sessions, but could not narrow down differences on key contract terms.
Regarding claims that new contract terms were presented on October 7 without allowing sufficient review time, KHNP clarified that these adjustments reflected the contractor's requests from previous negotiations. It proposed an increase in the contract amount to account for the increased construction volume compared to the initial bidding and to compensate for the volume increase at the time of finalizing the basic design.
In response to Daewoo Engineering & Construction's submission of a revised proposal to lower the contract amount on the day negotiations ended, KHNP acknowledged that while there were adjustments to the proposed amount, key issues such as settlement conditions based on detailed design volumes remained unresolved.
However, KHNP did not completely rule out the possibility of renegotiation. It stated that while its principle is not to conduct additional negotiations, it has communicated to Daewoo Engineering & Construction its willingness to engage in follow-up discussions if a mutually acceptable agreement is reached before the expiration of the existing joint cooperation agreement.
KHNP emphasized, "The mere change of contractors does not directly lead to a decline in the international credibility of the Korean nuclear industry. Rather, it is crucial to prevent delays in the overall project schedule caused by delays in contractor selection."
* This article has been translated by AI.
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