State to pay KHNP Kc407bn for two Dukovany units, Kc15bn for fuel

Prague/Dukovany, South Moravia, July 18 (CTK) - The Czech state will pay Kc407bn to the Korean firm KHNP for the construction of two units of the Dukovany nuclear power plant and another Kc15bn for the supply of nuclear fuel, news site e15.cz reported today, citing contracts published by company Elektrarna Dukovany II.

Significant portions of the contracts for the construction and fuel supply, such as the price section, passages on the completion time and a large part of the subcontracting chapter, are redacted as they are trade secrets, E15 noted.

However, it is clear from the contract that the state, as the majority owner of Elektrarna Dukovany II, the company in charge of the nuclear tender, should have clear control over individual suppliers, which could increase the participation of Czech companies in the construction of the units, writes E15.

The contract stipulates that if the owner requires it in connection with individual subcontractors, the contractor shall submit them for the owner's approval, according to E15. With some exceptions, such as Czech turbine supplier Doosan Skoda Power, KHNP will select suppliers in tenders.

Industry and Trade Minister Lukas Vlcek had earlier said that the involvement of Czech companies in the construction and operation of the new nuclear units at Dukovany would reach the promised 60 percent of the project. This Thursday, he met with KHNP CEO Whang Joo-ho in South Korea. They confirmed that the construction of the two nuclear units at Dukovany will be completed on time and within budget, Vlcek said.

The Czech government decided to build two new nuclear reactors last July. It gave preference to KHNP's bid over that of France's EDF. Another bidder, Westinghouse, was eliminated from the tender earlier. The contract with KHNP was signed by Elektrarna Dukovany II on June 4.

The first unit at Dukovany is expected to be completed in 2036. The construction of new nuclear units in the Czech Republic is expected to be the largest domestic contract.

hel/er