Business · Companies · 9 hrs ago
Korea Hydro & Nuclear Power ends talks with Czech plant builders
South Korea’s Korea Hydro & Nuclear Power ended construction contract talks with Daewoo and Doosan for the Dukovany nuclear project in the Czech Republic.
The dispute centered on contract terms, including who would pay if construction needs more materials or costs more than expected.
Korea Hydro & Nuclear Power wanted a fixed total price, while the consortium sought payment based on the quantities actually used.
The project involves two new APR1000 reactors and is part of South Korea’s first nuclear power plant export.
The utility says replacing the builders should have limited impact, but acknowledges some disruption is possible and says it will take on certain early tasks itself.
It plans to invite bids around March or April 2027 and select a new South Korean builder by July 2027.
The schedule is tight, with construction planned to start in 2029, and legal disputes with the former consortium remain possible.
Korea Hydro & Nuclear Power ended construction contract talks with the Daewoo Engineering & Construction–Doosan Enerbility consortium for the Dukovany nuclear plant in the Czech Republic.
The sides failed to agree on key contract terms, including how to handle additional construction quantities and costs.
KHNP plans to select a new construction contractor by July 2027 and says it will invite South Korean companies only.
The company says it will work to limit delays, while industry observers warn the replacement process could put the project schedule under pressure.
The project covers two APR1000 reactors at Dukovany, with an estimated cost of about 407 billion koruna.
- Who
- Korea Hydro & Nuclear Power and the Daewoo Engineering & Construction–Doosan Enerbility consortium.
- What
- KHNP ended negotiations on the consortium’s construction contract for the Dukovany nuclear project and plans to seek a new contractor.
- When
- October 29, 2026.
- Where
- The Dukovany nuclear plant project in the Czech Republic.
- Why
- The sides could not agree on key contract terms, including costs, construction quantities and responsibility for risks.
Korea Hydro & Nuclear Power
Daewoo Engineering & Construction–Doosan Enerbility consortium
Contract pricing
Korea Hydro & Nuclear Power
KHNP said the project was based on a fixed total price and that the contractor should follow that approach.
Daewoo Engineering & Construction–Doosan Enerbility consortium
The consortium argued that the construction work should be paid according to actual quantities used, because the design was still developing.
Cost and risk
Korea Hydro & Nuclear Power
KHNP said the consortium’s requested increase exceeded what it could accept and that its proposed prices included allowances for risk.
Daewoo Engineering & Construction–Doosan Enerbility consortium
Daewoo argued that it was unfair for a contractor not involved in the design to bear the risk of uncertain material quantities.
The Czech government selected KHNP as preferred bidder for Dukovany units 5 and 6.
KHNP and the Czech side signed the main contract for the project.
KHNP proposed a revised arrangement for settling construction quantities, according to its account.
KHNP announced that it had ended construction contract negotiations with the Daewoo–Doosan consortium.
KHNP plans to select a new construction contractor.
- Project
- Two APR1000 reactors
- Project location
- Dukovany, Czech Republic
- Estimated project cost
- About 407 billion koruna
- Negotiation ended
- October 29, 2026
- New contractor target
- By July 2027
- New tender market
- South Korean companies only
4 sources
What people are saying
Replacing the construction company will not have a major impact on the project.
We respect KHNP’s judgment that negotiations had to be finalized today to ensure timely completion.
If the conditions Daewoo Engineering & Construction described as burdensome remain in place, they could also burden other construction companies.