Czech Nuclear Power Plant Construction Deal Falls Through; Industry Minister Kim Jung-kwan Says 'Respects KHNP's Decision'

▲ Dukovany Nuclear Power Plant in the Czech Republic

Regarding Korea Hydro & Nuclear Power's (KHNP) termination of construction contract negotiations for the Dukovany nuclear power plant project in the Czech Republic with the Daewoo E&C and Doosan Enerbility consortium, Minister of Trade, Industry and Energy Kim Jung-kwan stated that he respects KHNP's decision.

Minister Kim made the remarks via social media this morning (October 29), under the title "We will successfully complete the Czech nuclear power project without wavering."

He stated, "KHNP and the Daewoo E&C-Doosan Enerbility consortium continued negotiations over contract conditions for a long time, but ultimately failed to narrow their differences," adding, "While autonomous negotiations and management decisions between companies must be respected, it is regrettable since these are the companies that achieved the Czech nuclear power plant order together."

However, he explained that the schedule for the Czech nuclear power project cannot be delayed.

He emphasized, "A nuclear power project is a 'century-long partnership business' spanning 100 years from contract to construction, operation, and completion. Mutual trust is more important than anything else," and stressed, "We can no longer delay to meet the major schedule of the Czech nuclear power project."

He added, "For this reason, I respect KHNP's decision that it is inevitable to conclude the prolonged negotiations and proceed with selecting a new construction contractor."

Minister Kim noted that while KHNP is preparing to select a new contractor, it is also formulating follow-up measures to minimize project gaps. He promised, "The government will also closely monitor the progress of the project in close cooperation with the Czech government and Team Korea, and actively support the successful implementation of the project."

He emphasized, "Taking this experience as a lesson, we will re-examine and further strengthen Team Korea's cooperative system," and added, "Even if unexpected difficulties arise, we will not waver and will fulfill our responsibilities to the end. We will definitely keep our promise to the Czech Republic and protect the credibility of South Korea's nuclear power industry."

KHNP, the main contractor for the Dukovany nuclear power plant construction project, announced the termination of negotiations, stating that it had been conducting construction contract negotiations with the Daewoo E&C-Doosan Enerbility consortium, but both sides failed to reach an agreement on key contract conditions.

(Photo provided by Korea Hydro & Nuclear Power, Yonhap News)

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