Industry Minister Kim Jung-kwan: "Czech Nuclear Project Will Not Fall Through"... Government Establishing Legal Basis for Dispute Intervention

Dismisses possibility of project falling through at National Assembly trade committee plenary session
"KHNP: Ending agreement with Daewoo E&C to take one month... existing construction schedule to be maintained"
Government pursues legal basis for intervention in nuclear power export contract disputes

Yonhap News Agency

Minister of Trade, Industry and Energy Kim Jung-kwan dismissed the possibility that the Czech Republic's Dukovany new nuclear power plant project could fall through following the breakdown of negotiations over the construction contract. Although the breakdown in negotiations between Korea Hydro & Nuclear Power (KHNP) and Daewoo E&C has made a change of construction contractor inevitable, he said the government would ensure the project stays on its original schedule. He also said the government is establishing a legal basis for intervening in disputes between companies arising from nuclear power export projects.

At a plenary meeting of the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee on the 9th, Committee Chair Kim Seong-won asked whether the Czech nuclear power project could fall through. Minister Kim replied, "It will not fall through. I want to make that absolutely clear."

The Dukovany nuclear power project in the Czech Republic is valued at a total of 27 trillion won. On October 29, KHNP announced that it had ended negotiations on the construction contract with a consortium of Daewoo E&C and Doosan Enerbility. The decision followed a failure to resolve differences over construction costs and contract terms. KHNP says it cannot accept the construction contractor's demands, while Daewoo E&C has protested that negotiations were unilaterally halted despite its proposal of revised terms that would have required it to absorb losses of several hundred billion won.

Minister Kim also reiterated that he respects KHNP's decision to end the negotiations. Earlier, he said, "We can no longer afford to delay if we are to meet the key milestones for the Czech nuclear power project," adding, "I respect Korea Hydro & Nuclear Power's judgment that, under the circumstances, it is inevitable to conclude the lengthy negotiations and begin selecting a new construction contractor."

KHNP President Kim Hoe-cheon said on the 9th that the process of ending the joint cooperation agreement with Daewoo E&C is expected to take about one month. He said the existing construction schedule could still be met even after a new contractor is selected.

The government is also pursuing the establishment of a legal basis for intervening in disputes. Minister Kim said, "As we revise the laws related to nuclear power, we are also establishing a legal basis for the government to take part in disputes."

The Ministry of Trade, Industry and Energy has maintained that it lacks the legal authority to intervene directly in negotiations between KHNP and construction contractors. If the relevant laws are amended, the government's role and scope for intervention in contract disputes arising from nuclear power export projects could change.

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