Korea's KHNP poised to sign final contract for Czech nuclear project

KHNP President Hwang Ju-ho and employees celebrate after receiving news that Korea Hydro & Nuclear Power was selected as the preferred bidder for the Czech nuclear power plant on July 17, 2024/ Courtesy of the Ministry of Trade, Industry and Energy

SEOUL, April 28 (AJP) - Korea Hydro & Nuclear Power (KHNP) and Czech utility EDU II are expected to finalize a contract next month for the construction of new reactors at the Dukovany nuclear power plant, after clearing the last major regulatory hurdle, industry sources said on Monday.

The Czech Republic’s Office for the Protection of Competition ruled last week that there were no legal grounds to challenge KHNP’s selection as the preferred bidder, dismissing an appeal from rival Électricité de France (EDF). The decision lifts the provisional measures that had delayed the signing process for months.

EDF had contested the bidding results since KHNP was named preferred bidder last year, filing a series of objections that temporarily halted progress on the $1.6 billion project.

Earlier this month, South Korean Industry Minister Ahn Duk-geun told lawmakers that "the documentation has been completed and legal reviews and board procedures are underway locally," adding that officials aim to conclude the contract by late April or early May, depending on local developments.

If finalized, the Dukovany project would mark South Korea’s second major export of nuclear technology, following its 2009 deal to build the Barakah nuclear power plant in the United Arab Emirates. It would also be Korea’s first entry into Europe’s nuclear sector, long dominated by established players such as France’s EDF and Russia’s Rosatom.

KHNP is leading a consortium known as “Team Korea,” which includes affiliates of Korea Electric Power Corporation, as well as private companies like Doosan Enerbility and Daewoo Engineering & Construction.

While the final contract price remains under negotiation, the Czech government has estimated the cost of Dukovany Units 5 and 6 at approximately 400 billion Czech crowns, or 26 trillion Korean won. Should the project proceed smoothly, KHNP could also gain an advantage in future bids for two additional reactors at the Temelín site, where Czech authorities are considering an expansion. KHNP originally submitted proposals for all four units during the initial bidding phase.

The Dukovany project also signals a broader strategic collaboration between South Korea and the United States in the European nuclear market. In January, KHNP and Westinghouse agreed to settle a two-year intellectual property dispute, pledging to cooperate on future projects under the “Team Chorus” alliance — a blend of “Team Korea” and U.S. capabilities.

Industry analysts suggest Westinghouse may supply key components for the Czech reactors, following a model similar to the Barakah project, where American firms provided reactor coolant pumps, turbine generators, and digital control systems.

Candice Kim 수습기자 candicekim1121@ajupress.com

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