Energy company calls for swift decision as PM says tender was ‘transparent and fair’
The Czech Republic's state-run energy company ČEZ will soon appeal a court injunction preventing it from signing a multibillion-dollar nuclear power plant project with a South Korean consortium led by Korea Hydro & Nuclear Power, chief executive officer Daniel Benes said on Wednesday (7 May).
“We will soon file an appeal and a motion to dismiss the injunction,” Benes told reporters at a press briefing, adding that the motion will be filed next week.
“Given the importance of the case, we expect the court to make a swift decision,” he said.
His comments came after a Czech court halted the Czech government’s signing of an agreement for two South Korean-made nuclear power plants after a last-minute complaint from rival bidder, France’s state power company and nuclear operator EDF.
Executives from Korea Hydro & Nuclear Power (KHNP), a subsidiary of state-run Kepco, and government officials were already en route to the Czech Republic to sign contracts after last year beating France’s EDF and Westinghouse of the US to the deal to supply two APR1400 plants for the Dukovany site in the south of the country.
However, EDF filed a lawsuit on 2 May to block the contract after losing an appeal with the Czech Republic’s antitrust watchdog UOHS, and a regional court In Brno on 6 May said it had issued a “pre-emptive ruling” to stop the signing. The deal cannot now be signed until the court passes verdict on the case.
The contract, representing what will be country’s largest energy investment to date, is said to be worth at least 400 billion crowns (€16bn, $18bn).
State power company ČEZ, which is overseeing the project, is reportedly preparing to appeal.
Czech prime minister Petr Fiala said he believed the tender was “correct and in line with law”. ČEZ said the South Korean bid was the better one and the tender was transparent and fair.
EDF welcomed the postponement, saying it “provides the necessary time for a thorough assessment of any potential infringement of its rights”.
It said it was “fully committed to pursuing all legal actions”, including an ongoing probe with the European Commission through its recently created Foreign Subsidies Regulation, adding that these proceedings “have been intensified in the last few days”. The Foreign Subsidies Regulation allows Europe to address distortions in the EU market caused by foreign subsidies.
EDF also said it expected the legal proceedings to help create a “significant localisation” that would lead to more local jobs being created by the project.
Seoul ‘Confident Project Will Move Forward’
South Korean industry minister Ahn Duk-geun said he was confident that the project will move forward.
According to reports in South Korea, Ahn was travelling to Prague for the official signing ceremony, scheduled for 7 May, when the Czech court issued the preliminary injunction.
“For now, a pause is inevitable, and we cannot predict whether the delay will last days or months,” Ahn told reporters upon arriving in Prague.
“Still, this project is of major national importance to the Czech Republic –it’s the country’s largest energy project.
“The Czech side made considerable efforts to ensure fairness, objectivity, and transparency throughout the process, right up to the final announcement. We believe there will be no major issues, as confirmed by the UOHS ruling.”
The signing of the contract with KHNP would mark South Korea’s first overseas nuclear power station project since 2009, when it won a contract to build four APR1400 plants at Barakah in the United Arab Emirates.
The first new unit at Dukovany had been expected to become operational by 2036 and the second about two years later.
The Czech Republic has six commercially operational reactor units: four Russia-designed VVER-440 units at Dukovany and two larger VVER-1000 units at Temelín.
According to the International Atomic Energy Agency, the six units provide about 36.7% of the country’s electricity production.
