Prague: A South Korean consortium stated on Wednesday that it respects a Czech court's decision to temporarily block the Prague government from signing a multibillion-dollar agreement with South Korea for the construction of two nuclear reactors. The consortium vowed to follow all necessary legal procedures for the deal.
According to Yonhap News Agency, the Korea Hydro and Nuclear Power Co. (KHNP), which leads the South Korean consortium, emphasized its commitment to legal compliance in a press release. "KHNP respects the legal procedures of the Czech Republic and will faithfully comply with all relevant laws and regulations," the company stated.
The KHNP asserted that the bidding process for the new nuclear power plant project in the Czech Republic has been conducted fairly, transparently, and legally under the supervision of the Czech government, Czech's main electricity company CEZ, and the contracting authority, Elektrarna Dukovany II (EDU II).
The South Korean firm expressed regret over what it described as "continued attempts by our competitor to undermine the outcome of the bidding process." The KHNP-led consortium was initially set to sign the final agreement on Wednesday for the estimated 26 trillion-won (US$18.6 billion) deal to build two 1,000-megawatt reactors at the Dukovany nuclear power plant, located about 200 kilometers south of Prague.
A regional court in Brno, the Czech Republic's second-largest city, issued an injunction on Tuesday to temporarily prevent CEZ from signing the contract. This decision came as the court reviews a legal complaint filed by France's EDF, a losing bidder in the tender.
KHNP indicated its intention to "actively cooperate with Czech authorities to safeguard the company's qualifications and interests related to signing the final contract."
The South Korean consortium was named the preferred bidder for the Czech project in July 2024. Since then, both EDF and U.S.-based Westinghouse had filed complaints with the Czech Office for the Protection of Competition (UOHS) regarding the government's selection process. In October, however, the UOHS rejected their complaints, prompting EDF to escalate the case to the court.