The construction project for the Czech Dukovany nuclear power plant, valued at 27 trillion won, has hit a snag due to the collapse of contract negotiations. Korea Hydro & Nuclear Power (KHNP) and the lead contractor, Daewoo Engineering & Construction, are currently in conflict over the responsibility for the failed talks. Additionally, Doosan Enerbility, which formed a consortium with Daewoo, has distanced itself from Daewoo's position, revealing discord within the 'Team Korea' coalition.
On October 29, KHNP announced the official termination of contract negotiations with the Daewoo and Doosan Enerbility consortium. The negotiations, which began after the main contract was signed in June of last year, lasted approximately 15 months but failed to resolve differences over construction costs, contract terms, and risk-sharing.
KHNP proposed a contract method that would determine the total construction cost based on the quantities at the basic design stage. In contrast, the contractors demanded adjustments based on quantities at the detailed design stage. KHNP explained that during negotiations, it adjusted construction costs to account for potential increases in quantities and proposed a compromise to finalize the contract amount upon approval of the basic design, but no agreement was reached.
Daewoo Engineering & Construction expressed strong opposition, claiming that KHNP made unilateral decisions. They argued that KHNP changed contract conditions on October 7 without providing sufficient time for review and submitted a revised proposal with a lower contract amount on the same day, yet still declared the negotiations failed.
On the other hand, Doosan Enerbility stated that Daewoo issued a statement under the consortium's name without prior consultation and clarified that it does not align with their official position. Doosan Enerbility also indicated its intention to participate in new contractor bids.
KHNP plans to select a new contractor by July of next year, but concerns have been raised about potential delays to the overall project timeline. Initially, construction at the Dukovany site was scheduled to begin in January 2028, with main construction set to start in November 2029. However, the change in contractors poses a significant challenge. KHNP stated, 'We will minimize the impact on the main contract and proceed with the project as originally planned.'
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.