Czech Authorities Dismiss Competitor's Objection to 'Hanhwa Nuclear Power Plant Contract'... Will Negotiations Gain Momentum?

Westinghouse·EDF Objection Dismissed
Demand for Decision on Appeal Within 2 Months

Korea Hydro & Nuclear Power (KHNP) has been selected as the preferred negotiation partner for the construction project of a nuclear power plant in the Czech Republic, and the local antitrust authority has dismissed objections raised by competing companies.

The Czech Office for the Protection of Competition (UOHS) issued a press release on the 31st (local time) regarding objections from the U.S. company Westinghouse and the French Electricit? de France (EDF), stating, "The procedures concerning the proposals from the two companies have mostly been concluded, and the remaining parts have been dismissed." However, the two companies may appeal this decision.

[Image source=Reuters Yonhap News]

Earlier, the Czech government guided a bidding process for the construction of a new nuclear power plant in the Czech Republic in 2022, targeting KHNP, Westinghouse, and EDF. In July, KHNP was finally selected as the preferred negotiation partner for the additional construction project of the Dukovany nuclear power plant. Following this, Westinghouse and EDF, which were eliminated in the bidding competition, each filed objections with the Czech antitrust authority after KHNP was selected as the preferred negotiation partner.

The two companies claimed that KHNP was unable to fulfill the contract and argued that the selection of the preferred negotiation partner violated the basic principles of public procurement. However, the UOHS concluded that the two companies did not have the right to raise objections and dismissed the case. Based on the so-called "security exception" under Czech public procurement law, the UOHS also dismissed Westinghouse's claim that the bidding process was illegal due to the expiration of the objection period. Other claims, including violations of subsidy regulations, were also dismissed.

With the dismissal of the objections, a green light has been given to KHNP’s nuclear power plant contract negotiations. However, the UOHS explained that the injunction issued the previous day prohibiting KHNP from signing the final contract remains valid until the decision on the objections takes effect. This means that if Westinghouse and others appeal, the contract can only be signed once the ruling is finalized. It is reported that the UOHS has requested Westinghouse and EDF to decide whether to appeal within two months.

Luk?? Bl?ha, Czech Minister of Industry and Trade, said in an interview with local media Echo24 the previous day, "The state is neither the project owner nor a participant in the procedure, so it is not in a position to comment on the bidding process," but added, "Since this project is large and important, such stages were expected." He also stated that all three companies?KHNP, Westinghouse, and EDF, which raised objections?have accepted the bidding conditions.

Earlier, the UOHS had stated that although objections from competitors were received and the signing of the contract with KHNP was temporarily prohibited, "such preliminary measures are standard procedures and do not indicate how this issue (the final contract with KHNP) will be decided."