Prague: The Czech Republic's state-run energy company CEZ is set to appeal a court injunction that has temporarily halted the signing of a multibillion-dollar nuclear power plant project with a South Korean consortium, led by Korea Hydro and Nuclear Power Co. (KHNP), according to Chief Executive Officer (CEO) Daniel Benes. His statements followed a recent decision by a Czech regional court to suspend the finalization of the estimated 26 trillion-won (US$18.6 billion) project, following a legal challenge by French energy company EDF, which was a losing bidder in the tender process.
According to Yonhap News Agency, Benes announced plans to file an appeal and a motion to dismiss the injunction next week, emphasizing the importance of the case and expressing hope for a swift court decision. KHNP had originally intended to sign the final agreement with Elektrarna Dukovany II (EDU II), a CEZ subsidiary managing the project, but the signing has been delayed pending a final court ruling.
Benes pointed out the intricacies of the closed-door bidding process and mentioned that it is not unusual for unsuccessful bidders to lodge legal complaints, referencing EDF's legal actions. EDF and U.S.-based Westinghouse, another unsuccessful bidder, had previously lodged complaints with the Czech Office for the Protection of Competition (UOHS), disputing the government's evaluation process. The UOHS rejected these complaints in October, leading EDF to escalate the issue to the regional court in Brno, the Czech Republic's second-largest city, last week.
Despite the confidential nature of the closed bid, Benes noted that KHNP's proposal was deemed the best, offering comprehensive price guarantees. The South Korean consortium was chosen as the preferred bidder to construct two 1,063-megawatt (MW) nuclear reactors at the Dukovany Nuclear Power Plant, located about 200 kilometers southeast of Prague. If completed, this project would mark South Korea's first overseas nuclear plant contract since 2009, when a KHNP-led consortium secured a deal for the Barakah Nuclear Power Plant in the United Arab Emirates.
Benes expressed confidence in the legal process, suggesting that the Highest Administrative Court would likely overturn the lower court's injunction. However, he did not specify a timeline for the final ruling. Addressing the delay, Benes extended apologies to the South Korean delegation for the last-minute schedule change. The South Korean delegation, led by Industry Minister Ahn Duk-geun, arrived in Prague on Tuesday and is expected to meet with the Czech prime minister.
EDU II CEO Petr Zavodsky stated that while the company respects the court's decision, there are concerns about the ruling's impact on the national interest, especially as the Czech Republic seeks to transform its energy strategy. The Czech government aims to reduce reliance on fossil fuels and increase nuclear energy's share, which currently provides about 40 percent of the country's electricity, with plans to raise this to over 50 percent in the coming years.
The two new reactors are planned to be constructed adjacent to the four existing 510-MW units at Dukovany, which have been operational since the 1980s. The first new unit is anticipated to begin trial operations in 2036, followed by the second unit approximately two years later.