Czech antitrust delay will not affect nuclear deal finalization, KHNP says

The Czech antitrust regulator’s decision to delay awarding a nuclear power plant contract to Korea Hydro & Nuclear Power (KHNP) does not indicate how the case will ultimately be decided, KHNP said on Wednesday.

Industry Minister Ahn Duk-geun explains the Czech nuclear power project in Sejong on July 18 after a Korean consortium was selected as the preferred bidder. [YONHAP]

The Czech antitrust regulator’s decision to delay awarding a nuclear power plant contract to Korea Hydro & Nuclear Power (KHNP) does not indicate how the case will ultimately be decided, KHNP said on Wednesday.

“This decision is a preliminary measure in accordance with standard procedure after the Czech antimonopoly office, UOHS, received appeals from competitors,” said KHNP, a state-run energy company.

KHNP is part of a Korean consortium that was selected as the preferred bidder for a $17 billion nuclear reactor project in the European country.

The energy firm added that it is proceeding with the target schedule for finalizing the contract in March 2025. Park Sang-ook, senior secretary for science and technology, echoed the stance during his interview on broadcaster YTN.

"The temporary block takes place when competitors in the bidding file a complaint — it is a procedural event," Park said, "Citizens should rest assured." In line with the process, a delegation of some 60 experts from the Czech state utility, CEZ, will visit Korea in the third week of November for two weeks to keep negotiating details ahead of the planned formal contract in March of next year.

Local media outlets reported that the delegation will also examine key nuclear power plants in the country and the production capabilities of Doosan Enerbility, a manufacturer of nuclear reactors and a member of the Korean consortium. However, investor sentiment surrounding the companies involved in the project soured on Thursday, following the reports on the UOHS’s move.

Shares of Doosan Enerbility closed down 6.31 percent to 20,050 won ($15) on Thursday compared to previous trading day. Daewoo E&C, also a part of the consortium, lost 3.02 percent to close at 3,535 won while state-run Kepco E&C plummeted 3.37 percent and Kepco KPS 1.1 percent.

Updated, Oct. 31: Added statement by senior secretary for science and technology, market response.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]