Czech court blocks $18B nuclear plant deal with Korea over France’s complaint

Prague: A Czech court has granted an injunction filed by France’s EDF on Tuesday that blocks the Czech Republic’s state-run CEZ from signing a contract with Korea Hydro & Nuclear Power (KHNP) on a roughly $18 billion nuclear power plant deal, a day before the official ceremony was scheduled to be held.

The decision results in a postponement of the scheduled signing ceremony set for May 7 between the KHNP-led consortium and the Elektrárna Dukovany II. Minister of Trade, Industry and Energy Ahn Duk-geun was scheduled to visit the Czech Republic for the ceremony.

“It’s uncertain if we can sign the deal tomorrow, and we are in discussion with the contractor,” a KHNP spokesperson said.

EDF dropped out of the bidding in July of last year when the Czech government selected the KHNP consortium as the final bidder for the project. EDF then appealed to the Office for the Protection of Competition, the Czech anti-monopoly agency, over the result, but the office dismissed it.

The French firm last week filed an injunction with the Regional Court in Brno contending that the competition authority’s decision was unfair, arguing that the process should be halted until its appeal is concluded.

“The essential point is that if the contract was concluded, the French bidder would irretrievably lose the opportunity to clinch the public contract, even if the court rules in its favor in the lawsuit,” the Regional Court in Brno said in a document on Tuesday.

Czech Prime Minister Petr Fiala, however, countered that the “bid evaluation process was conducted correctly and in accordance with applicable laws,” justifying the Czech government’s selection of KHNP.

“When selecting a supplier, the key factors were the availability of affordable electricity for citizens and businesses, as well as the best guarantees,” Fiala posted on X. “I believe that the court is aware of all the context and risks and will make a decision quickly.”

The deal includes the construction of two nuclear reactors in the southeastern region of Dukovany, each with a 1,063-megawatt APR1000 reactor, a KHNP-developed nuclear reactor set, which is slated to be complete by the end of 2029.

It marks Korea’s largest-ever nuclear export in its history and its first-ever nuclear power plant export to Europe. It’s also the first deal since the 2009 Barakah project in the United Arab Emirates.