The Czech utility overseeing a major nuclear power project has filed an appeal to overturn a court order blocking the signing of an $18 billion contract with Korea Hydro & Nuclear Power, seeking to resolve a legal dispute that has delayed the agreement.
On Monday in the Czech Republic, Elektrarna Dukovany II, a subsidiary of state-owned energy group CEZ, filed an appeal with the Czech Supreme Administrative Court to overturn the preliminary injunction issued by the Brno Regional Court on May 6 in favor of France’s EDF, which lost the bid to KHNP. The injunction effectively suspended the contract just one day before it was scheduled to be signed by EDU II and KHNP.
EDU II is leading the state project to build two new nuclear reactors at the Dukovany site in the Czech Republic.
Since losing the tender, EDF has pursued legal action to block the deal, claiming that KHNP's bid was unrealistically low and backed by illegal state subsidies in violation of European Union rules.
The Czech utility argues that the Brno Regional Court "incorrectly" assessed whether the public interest in signing the contract outweighs the theoretical possibility that the unsuccessful bidder, EDF, might reenter the competition. It also maintains that the tender process was carried out transparently over several years, with the bidding process officially beginning in March 2022.
In a LinkedIn post, CEZ CEO Daniel Benes said the case goes beyond a single project, touching on the credibility of the Czech Republic’s broader energy strategy.
“This is not just about a single project, but about trust in the legal environment and the stability of the state's energy strategy,” Benes said. “I believe the Supreme Administrative Court will deliver a clear and swift decision.”
Given the scale of the Dukovany project and the risk of significant financial losses if delayed, industry officials expect the court to expedite the case.
Last July, KHNP won the bid to build the two 1,055-megawatt reactors — Units 5 and 6 — with construction scheduled to begin in 2029. The first reactor is targeted to go operational in 2036.
The Czech government has preapproved the contract between CEZ and KHNP, allowing the deal to proceed immediately if the injunction is lifted.
KHNP is also preparing to file for legal remedy with the Supreme Administrative Court.
“This situation could cause serious damage not only to the Czech national interest, but also to KHNP,” the company said in a statement. “We remain confident that the Dukovany bidding process adhered fully to transparent legal procedures.”
If finalized, the contract would mark Korea’s second-ever nuclear export project, following the Barakah project in the United Arab Emirates in 2009 — and its first in 16 years.
herim@heraldcorp.com
