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Photo courtesy of Korea Hydro & Nuclear Power |
[Alpha Biz= Kim Jisun] The final signing of Korea Hydro & Nuclear Power's (KHNP) contract to build a new nuclear power plant in Dukovany, Czech Republic, has been halted just one day before it was set to be finalized. The delay follows a Czech court’s decision to uphold an injunction requested by France’s EDF, which has contested the tender outcome.
On May 6 (local time), the Regional Court in Brno issued a preliminary injunction preventing the final contract signing between KHNP and Dukovany II Nuclear Power Plant Company (EUD II), a subsidiary of Czech utility ČEZ. This comes after EDF filed a legal complaint on May 2 challenging a previous decision by the Czech antitrust authority (UOHS), which found no issue with KHNP’s bidding process.
The court stated that allowing the contract to proceed could irreparably harm EDF's opportunity to win the project, regardless of the final legal outcome. However, it clarified that the injunction does not imply a ruling in EDF’s favor in the final judgment.
EUD II, the contracting authority, has maintained that KHNP's proposal was superior in all aspects and is reportedly prepared to seek damages should EDF's claims be dismissed. UOHS also reaffirmed its stance that the tender process was conducted appropriately and sees no grounds to overturn its previous decision.
The Dukovany project, valued at 400 billion Czech koruna (approx. KRW 26.2 trillion or USD 17 billion), is the largest single construction initiative in Czech history.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
