Unifying Nuclear Power Plant Export Channel... KEPCO Takes the Lead

Work Cooperation Agreement to Be Signed Next Month
KHNP to Oversee Technical Operations and Construction
KEPCO and KHNP Discussed as Joint Prime Contractors

The previously dual nuclear power plant export system, divided between Korea Electric Power Corporation (KEPCO) and Korea Hydro & Nuclear Power (KHNP), will be unified under KEPCO. In order to avoid repeating the disputes that arose during the construction of the Barakah Nuclear Power Plant, KEPCO will serve as the sole overseas export channel, while KHNP will be responsible for technical operations and construction.

According to the Ministry of Trade, Industry and Energy and the nuclear power industry on April 22, a "work cooperation agreement between KHNP and KEPCO" containing these details is scheduled to be signed next month. The signing ceremony will be attended by Minister Kim Jungkwan of the Ministry of Trade, Industry and Energy, Kim Dongcheol, President and CEO of KEPCO, and Kim Hoecheon, President and CEO of KHNP. A senior official from the Ministry stated, "We are discussing a plan to unify the dual nuclear power plant export system currently split between KEPCO and KHNP under KEPCO," and added, "We plan to finalize the details soon and sign the related agreement between KEPCO and KHNP next month."

Panorama of Unit 4 of the Barakah Nuclear Power Plant in the UAE.

The core of this agreement is to unify the nuclear power plant export system under KEPCO. The specific method of unification has not yet been determined. However, the most likely scenario is that KEPCO, which has strengths in project financing and external negotiations, will serve as the official export channel, while KHNP, which possesses excellent technical and construction capabilities, will participate jointly. There is also discussion about explicitly listing both KEPCO and KHNP as "joint prime contractors" in overseas export contracts.

This integration of the nuclear power plant export channel is a follow-up to the Ministry's ongoing "plan to enhance the efficiency of nuclear power public enterprise export systems." It is also intended to prevent further legal disputes between the two public enterprises, as occurred during the construction of the Barakah Nuclear Power Plant.

The Barakah Nuclear Power Plant in the United Arab Emirates (UAE), Korea's first overseas nuclear power project awarded in 2009, is a project valued at 22.6 trillion won. Disputes between KEPCO and KHNP began when construction costs exceeded expectations due to project delays and rising labor costs. KHNP maintains that KEPCO, as the prime contractor, must pay an additional construction cost of 1 billion dollars (about 1.4 trillion won) due to design changes, while KEPCO argues that it can only pay after first receiving settlement from the UAE side. As a result, the two public enterprises are currently engaged in a legal dispute.

This content was produced with the assistance of AI translation services.