KHNP Terminates Construction Subcontract Negotiations for Czech Dukovany Nuclear Power Plant
en.Wedoany.com Reported - On October 29, Korea Hydro & Nuclear Power Co., Ltd. (KHNP) terminated negotiations with the Daewoo E&C–Doosan Enerbility consortium over the construction subcontract for Units 5 and 6 of the Czech Dukovany Nuclear Power Plant, as the two sides failed to reach agreement on key terms including project cost, contract pricing method, and construction scope. The project plans to build two 1,000 MW APR1000 nuclear units with a total installed capacity of 2,000 MW. KHNP plans to select a new construction contractor.
Since KHNP signed the main EPC contract for the nuclear power plant in June 2025, the two sides had continued negotiations on construction subcontracting arrangements, during which 78 working-level meetings, 11 dispute coordination meetings, and two executive-level meetings were held. The dispute centered mainly on how costs would be borne after an increase in work quantities. KHNP maintained that the total contract price should be locked based on the work quantities determined at the basic design stage, while the construction consortium demanded that the contract amount be adjusted according to the actual work quantities at the detailed design stage.
During the negotiations, KHNP raised its offer based on the expected increase in work quantities and proposed that the contract amount be finalized upon approval of the basic design, but the two sides still failed to reach an agreement. Daewoo E&C expressed regret over the termination of negotiations, saying that the Korean side proposed revised contract terms on October 7, leaving the construction consortium insufficient time for evaluation, and that it had requested an extension of the negotiation deadline to December 31.
KHNP has initiated procedures to terminate the existing cooperation agreement and plans to hold a briefing session for potential contractors in January 2027, launch a new round of bidding in April, and strive to complete the selection of a new contractor and contract signing by July 2027. Members of the existing consortium may still participate in the competition in the future in accordance with the bidding qualification requirements, and the specific bidding arrangements have not yet been finalized.
The Dukovany Nuclear Power Plant expansion project is implemented by the Czech project company Elektrárna Dukovany II, and KHNP obtained the main EPC contract in June 2025. The project was originally scheduled to start site preparation work in January 2028 and begin main construction in November 2029, with Units 5 and 6 planned to enter commercial operation in April 2039 and April 2040, respectively.
The termination of negotiations does not involve the cancellation of the main EPC contract for the Czech nuclear power plant. The engineering design contract undertaken by KEPCO E&C and the supply contracts for nuclear island equipment and turbine generator equipment already obtained by Doosan Enerbility remain valid. KHNP plans to continue advancing auxiliary facility design, heavy equipment transport route design, and related licensing work through separate contracting and other means to reduce the impact of the construction contractor change on the project schedule.
