The Czech government has announced that the final contract for Korea Hydro & Nuclear Power’s new nuclear power plant construction project, currently under legal dispute, may be delayed until after the Czech general elections in October, according to reports on the 27th.
Czech Prime Minister Petr Fiala stated that the original schedule to commence operations of the new power plant in 2036 remains valid, Reuters reported, citing Czech CTK news agency.
Korea Hydro & Nuclear Power (KHNP) and the tendering company, Dukovany II Nuclear Power Company (EDU II), under Czech Power Company (CEZ), initially planned to finalize the contract on the 7th. However, the day before, the Brno District Court accepted a provisional injunction request from competing company Electricité de France (EDF) and decided to prohibit the final contract until the main lawsuit is resolved, resulting in the contract being canceled.
The ordering party and KHNP have appealed this decision to prohibit the contract to the Czech Supreme Court.
Separately, EDU II applied to the Brno District Court to rescind the provisional injunction, arguing that the court made the decision without hearing from other parties, jeopardizing the overall schedule of the new nuclear power plant construction project due to the contract delay.
Czech planned to negotiate with KHNP for the construction of two new units at the Dukovany nuclear plant first, and then confirm plans to build two additional units at the Temelín nuclear complex.
EDF, which was unsuccessful in the bid, also challenged KHNP’s compliance with the Foreign Subsidies Regulation (FSR) not only in Czech courts but also with the European Union (EU). The EU is considering launching its investigation.
The Czech government and power authorities have indicated their intent to claim damages from EDF due to the contract delay, citing threats to national security and strategic interests.