KHNP Ends Negotiations with Construction Consortium for Czech Units
World Nuclear News
About WNN
Subscribe
Home | Energy & Environment | New Nuclear | Regulation & Safety | Nuclear Policies | Corporate | Uranium & Fuel | Waste & Recycling | Podcasts & Features | Fusion | Country Index
HOME / CORPORATE
Korea Hydro & Nuclear Power (KHNP) is to select a new contractor for the construction of two APR1000 reactors at the Czech Republic's Dukovany nuclear power plant following the collapse of contract negotiations with the Daewoo-Doosan consortium.
Dukovany (Image: CEZ)
The Czech government selected KHNP as its preferred bidder in July 2024 for the project and awarded KHNP the KRW26 trillion (USD19.4 billion) contract in June 2025. Daewoo Engineering & Construction and Doosan Enerbility had been selected as construction partners in 2018 and participated in the bidding process.
However, KHNP and the Daewoo-Doosan consortium failed to agree on key subcontract terms. The dispute involved:
-
Construction costs: KHNP proposed a lump sum contract based on baseline quantities established at the basic design stage, arguing for greater cost certainty. The consortium sought adjustments based on quantities determined at the detailed design stage, including potential increases in construction volumes.
-
Contract structure, scope of work, baseline quantities, and how main contract terms would be reflected in the construction contract.
"KHNP and the construction consortium had worked towards an amicable agreement through various levels of negotiations, but failed to reach a final agreement," KHNP stated. "We have begun the process of terminating the joint cooperation agreement with the existing contractors and are preparing comprehensive countermeasures, including preparations for a tender to select a new contractor."
KHNP aims to select a replacement contractor by July 2027, with a briefing for prospective bidders scheduled for January and bidding opening in April (details to be finalized). KHNP emphasized its commitment to keeping the project on schedule, with site preparation set to begin in January 2028 and full construction starting in November 2029. The two reactors are targeted for completion in 2039 and 2040, respectively.
Daewoo A&E expressed its position, stating that KHNP shifted cost burden related to design changes onto the contractor while not adequately accounting for increased construction quantities. They indicated their intention to continue discussions.
Doosan Enerbility stated, "We deeply share the view that the new Czech nuclear power plant project is important and needs to be carried out successfully. As the client has stated that existing consortium members will also be allowed to participate in the rebidding, we will prepare diligently, submit a bid, and do our utmost to complete the project successfully." They noted that KHNP's decision is unrelated to and does not affect their existing supply contracts with KHNP for reactor equipment and turbine generator equipment for the Dukovany New Nuclear Power Plant Project in the Czech Republic, signed on January 16th.