Czech govt approves signing of Dukovany contract with Korea's KHNP

Prague, May 7 (CTK) - The Czech government today approved the planned signing of the final contract with South Korea's KHNP for the construction of new nuclear units at Dukovany, preparing in advance for the signing when it becomes possible, Prime Minister Petr Fiala said at a press conference after the cabinet meeting.

He said he believed the court will decide on Dukovany soon.

The signing of the final contract with KHNP was originally planned for today, but the Regional Court in Brno on Tuesday issued an interim injunction blocking the signing of the agreement. The injunction was issued on the motion of French company EDF, which challenged the decision of the Czech antitrust office (UOHS) that had said the tender had been in order. The court has not yet ruled on EDF's lawsuit itself.

The Elektrarna Dukovany II company, which is co-owned by the state and semi-state energy group CEZ and is in charge of the nuclear tender, plans to appeal the preliminary injunction with the Supreme Administrative Court.

"For us, the matter is clear. The Korean company KHNP offered the best conditions in the tender, as well as the strongest guarantees that these conditions will be met," Fiala said. According to him, none of the competitors were even close to matching the terms offered by KHNP.

Today's approval of the deal could speed up the whole process of concluding the contract until the court allows the signing, Fiala added.

Fiala also stressed that the construction of new nuclear reactors in the Czech Republic is crucial for the future development of the domestic economy. "I believe that the court is aware of this importance and that it will do everything possible to make a decision as quickly as possible," he added.

Regarding EDF's lawsuit, he said that while he understands that the French company is defending its interests, the way it is doing so, goes against the interests of Czech companies and citizens.

KHNP was successful in the domestic nuclear tender last year, as the government preferred its bid to EDF and Westinghouse. The first unit at Dukovany is to be completed in 2036. The construction of new nuclear units in the Czech Republic is considered the largest domestic order in history. The cost of the currently preferred construction of two reactors at Dukovany amounts to Kc407bn at current prices.

tam/er

CZ0005112300