South Korean President Yoon Suk Yeol gives a congratulatory speech at the groundbreaking ceremony for Korea Hydro & Nuclear Power’s new nuclear reactors in Uljin, South Gyeongsang Province (Courtesy of the Presidential House)
The Czech Republic’s anti-trust body put a temporary bloc on the conclusion of a contract with Korea Hydro & Nuclear Power Co. (KHNP) for the construction of a new nuclear power unit following challenges by Westinghouse Electric Corp. and France’s EDF, Reuters reported on Wednesday.
A South Korean consortium led by the state-run KHNP was selected in July as the preferred bidder to build new nuclear reactors in Czech, beating Électricité de France S.A. (EDF) and Westinghouse, in a 400 billion-crown ($17.1 billion) project.
But a deal signing is being protracted after Westinghouse and EDF filed complaints against the decision.
In response to their appeals, Czech’s anti-monopoly authority UOHS started official proceedings work in September, according to the Reuters report.
KHNP has been in legal disputes over the technology license with Westinghouse, a key hurdle to South Korea’s nuclear reactor exports.
Westinghouse argued the Korean nuclear reactor model, APR1000, was based on the original design and technology of its APR1400 model, therefore the KHNP and its parent Korea Electric Power Corp. (KEPCO) should be held accountable for any damages caused by their export of the APR1400-modeled nuclear reactors.
But KHNP claimed it was licensed to use the technology, thus it is able to export them without permission from the US nuclear plant developer and is not liable for royalty payments.
The Czech government and majority state-owned utility CEZ (CEZP.PR) aim to conclude negotiations with KHNP and sign contracts by March 2025 and complete the first reactor by 2036.
The Barakah nuclear power plant in the United Arab Emirates was built by Korean companies
UOHS told Reuters that the preliminary measure to prohibit the conclusion of the contract was not indicative of how the case will be decided and was standard procedure in such a case.
A South Korean government official confirmed the report, and said Czech’s temporary prohibition of the conclusion of a contract would not scupper the prospective deal.
“Talks between KHNP and the Czech Republic are proceeding without disruption toward our goal of signing a contract by March as scheduled,” said the official.
CEZ also said it believed the preliminary measure would not impact the tender’s schedule. “[The company] is convinced it acted in accordance with the applicable laws from the first moment in the selection of the preferred bidder,” Reuters quoted CEZ as saying.
For the Czech nuclear reactor project, KHNP has teamed up with Korea Electric Power Corporation Engineering & Construction Company (KEPCO E&C), KEPCO Plant Service & Engineering Co. (KEPCO KPS), KEPCO Nuclear Fuel, Doosan Enerbility Co. and Daewoo Engineering & Construction Co.
Write to So-Hyeon Kim and Sul-Gi Lee at alpha@hankyung.com
Yeonhee Kim edited this article.