Despite court action by EDF intended to block the deal, ČEZ subsidiary Elektrárny Dukovany II has signed a contract with Korea Hydro & Nuclear Power (KHNP) to build up to four new nuclear units.
In July 2024, a South Korean consortium led by the state-run KHNP was selected as the preferred bidder for the construction of up to four new NPP units at the Dukovany and Temelín sites, with two reactors (units 5&6) confirmed for Dukovany. The total project cost was then estimated at approximately CZK200bn ($9bn) per unit. Completion of the first reactor is scheduled for 2036.
KHNP won the tender against both US Westinghouse and France’s EDF. Both companies appealed to the Czech Republic’s competition authority (UOHS – Úřad pro Ochranu Hospodářské Soutěže) about the selection process. Westinghouse later withdrew its appeal and EDF’s was rejected by the competition office in April. However, this delayed signing of the final contract with KHNP, which had originally been scheduled for March 2025.
EDF has now filed a complaint against UOHS with the Regional Court in Brno. The court has ruled that ČEZ could not sign the contract until EDF’s complaint has been dealt with. Czech Prime Minister Petr Fiala nevertheless approved the signing of the contract in principle. “The Czech Republic must be as energy self-sufficient as possible, said Fiala. “In the tender, we mainly pursued three goals – for the new units to produce energy at the lowest possible price; for Czech companies to be involved in the construction itself as widely as possible; and we also required a guarantee that the completion will go quickly and reliably. KHNP’s offer was the best in every way. That is why it was selected as a recommended supplier, which is why we approved the signing of the KHNP and EDU II contract today.”
He added: “The government respects the preliminary measures of the court, and thus the postponement of the signature. However, we want to have all the tasks fulfilled on our part so that as soon as the court allows the signature, it can happen without even a day of delay.”
Finance Minister Zbyněk Stanjura said: “The selection procedure provided us with the opportunity to compare different offers and thus achieve the most advantageous conditions for the Czech Republic adding that the decision of the Brno Regional Court will be opposed by EDU-II, which it will file an appeal with the Supreme Administrative Court as soon as possible. “We believe that the bid evaluation process was carried out correctly and in accordance with applicable laws. I believe that the court will decide quickly so that we can continue to prepare for the construction of new nuclear units.”
Therefore, regardless of the court action, representatives of Czech and Korean companies concluded 12 contracts on future contracts. “It is important that we do everything we can to continue immediately after the court’s decision,” noted Czech Minister of Industry & Trade Lukáš Vlček. The most important contracts include a framework agreement on the comprehensive supply of the turbine hall and a contract for the supply of a steam turbine between Škoda Power, KHNP and Doosan.
Other important agreements were concluded between KHNP and Czech companies Škoda JS, ÚJV Řež, Metrostav DIZ, ZAT, OSC, I&C Energo and NUVIA. A Memorandum of Cooperation was also signed between the Association of Entrepreneurs in Construction (SPS) and Korean company Daewoo, which will be the supplier of the construction part of the project.
Vlček also signed an Agreement on Cooperation in the Peaceful Use of Nuclear Energy. This focuses on the development of cooperation in nuclear safety, licensing, fuel cycle, research and development, sharing of experience and other areas. In addition to nuclear energy, memoranda of cooperation were signed in other fields including batteries, automotive industry and robotics sectors.
Following EDF’s court action, EDU-II published its “opinion” insisting that “the tender for the supplier of new nuclear units was fully transparent at all stages and under completely fair conditions”. It added: “The investor’s correct procedure in the selection process was also twice confirmed by the Office for the Protection of Competition. Unfortunately, even so, we are now forced to tolerate the steps of an unsuccessful candidate who could not win with the quality of his offer and is therefore trying to block the whole tender through the courts”.
The Brno court said on its website that EDF was unhappy that UOHS had ruled that it was not competent to conduct a review into the way the tender process had been conducted. Its preliminary assessment was that EDF’s arguments were “relevant and relatively strong and therefore issued a preliminary injunction”. However, it added: “This does not mean that the plaintiff will succeed in the subsequent legal proceedings. The court may change its preliminary opinion on the merits of the action once it has become acquainted with its additions, the reactions of the parties to the proceedings and the administrative file.”
KHNP said in a press release that it “respects the legal procedures of the Czech Republic and will faithfully comply with all relevant laws and regulations”. It added: “KHNP believes the bidding process for the new nuclear power plant project in the Czech Republic has been conducted fairly, transparently and legally. It expressed regret over “continued attempts by our competitor to undermine the outcome of the bidding process”.
