KHNP: 30% Czech share in Dukovany to be secured at deal signing

Prague, April 22 (CTK) - South Korean company KHNP expects that at the time of signing the contract for the construction of new units of Czechia's Dukovany nuclear power plant, at least a 30 percent share of the Czech industry in the value of the project will be contractually secured, KHNP representative Harry Chang has said.

In an interview aired on Czech Television (CT) over the weekend, Chang did not specify the exact date for the contract signing but mentioned that he expected it to happen soon. He said the signing was still prevented by the preliminary measure imposed by the Czech antitrust office (UOHS) after the nuclear tender was challenged by French company EDF.

However, Change expressed confidence that UOHS would reject EDF's complaint in the second instance. In its complaint to the authority, the French company questioned the authorisation to use the technology offered and also claimed that the foreign subsidy regulation had been infringed.

Industry and Trade Minister Lukas Vlcek had discussed the involvement of Czech companies in the construction of the new Dukovany reactors during his visit to South Korea in February. He also recalled this week that he and KHNP had agreed during this mission to achieve a 30 percent participation of Czech industry in the contract at the same time as signing the EPC contract.

The requirement for 60 percent involvement of Czech firms in the extension of Dukovany by the end of the contract still holds, Vlcek added.

EPC is a turnkey technology contract from design through manufacturing, installation, commissioning and subsequent maintenance.

It is already certain that the turbine and auxiliary equipment for the project will be supplied by the Plzen-based company Doosan Skoda Power. The company may also provide the entire turbine hall, Chang said.

Czech companies will be able to participate in public tenders for subcontracts for individual parts of the plant, Chang said.

According to earlier statements by Czech officials, the cost of building two reactors at Dukovany is expected to reach Kc400bn at current prices. Chang did not want to comment further on this figure, saying it was not appropriate before the contract was signed.

While Chang expects but did not give a specific date of signing the contract, Prime Minister Petr Fiala spoke in late March about a couple of weeks, while Finance Minister Zbynek Stanjura said last week he expected the signature by the end of the quarter. Vlcek, too, has talked about the next few weeks. According to Chang, the contract with CEZ was prepared by the end of March and now both parties are checking the text.

The Czech government preferred KHNP over EDF in the nuclear tender last year. It had earlier eliminated US company Westinghouse from the competition. The first unit at Dukovany is expected to be completed in 2036.

tam/er