KHNP-Daewoo E&C 'Czech Nuclear Plant' Construction Contract Talks Collapse... "Differences Over Contract Terms to Blame"

Failed to reach a final agreement on October 29
Korea Hydro & Nuclear Power: "Preparing response measures, including a tender to select a new contractor"

Negotiations over the construction contract for the Dukovany nuclear power plant project in the Czech Republic, being carried out by a consortium of Korea Hydro & Nuclear Power (KHNP), Daewoo E&C and Doosan Enerbility, have finally broken down.

KHNP announced on October 29 that it was “ending negotiations with the construction contractor over the construction contract for the Dukovany nuclear power plant project.”

A KHNP official said, “This is due to differences between the two sides over key contract terms. KHNP and the contractor have worked to reach an amicable agreement through working-level negotiations, a dispute mediation committee and executive-level talks, but ultimately failed to reach a final agreement.”

Accordingly, KHNP has decided to formally end negotiations on the construction contract to ensure the stable progress of the Dukovany nuclear power plant project, and is considering various follow-up measures to minimize the impact on the project.

KHNP said it has begun the process of ending the joint cooperation agreement with the existing contractor while preparing response measures, including a tender to select a new contractor. It added that it is drawing up a comprehensive contingency plan to address any gap in work before a new contractor is selected, including having KHNP directly carry out essential work.

Aerial view of the new nuclear power plant in Dukovany, Czech Republic.

After signing the main contract with the project owner, EDU II, in June 2025, KHNP had completed contracts through mutually beneficial negotiations for detailed design services (KEPCO E&C), reactor equipment supply (Doosan Enerbility) and turbine generator equipment supply (Doosan Enerbility). Negotiations are underway on contracts for nuclear fuel (KEPCO Nuclear Fuel) and commissioning and maintenance services (KEPCO KPS), with the aim of signing them in 2027.

A KHNP official said, “KHNP will work closely with the government, the project owner and partner companies to minimize the impact on the main contract and ensure the project proceeds as planned without disruption.”

This content was produced with the assistance of AI translation services.