Westinghouse appeals KHNP's victory in Czech nuke tender

Prague, Aug 26 (CTK) - US company Westinghouse Electric Company has filed an appeal with the Czech antitrust office UOHS against the selection of South Korean company KHNP as the preferred supplier for the construction of new nuclear reactors at Czech nuclear power plant Dukovany, Westinghouse told CTK today.

According to Westinghouse, KHNP does not have licences for the technology offered.

The Dukovany nuclear tender has a security exception, so unsuccessful bidders cannot appeal the procedure with UOHS, Czech semi-state energy company CEZ's spokesman Ladislav Kriz told CTK. CEZ is in charge of the tender.

Westinghouse's dispute with KHNP is long-standing. The US company already argued earlier that KHNP is not entitled to use the reactor technology offered in the Czech Republic, while KHNP disagreed with the allegation.

In July, the Czech government decided to build two new nuclear reactors at Dukovany. KHNP won the tender, as the government preferred it over French company EDF. CEZ is now negotiating the contract with the Koreans, which should be signed by the end of March next year. The first of the new reactors at Dukovany should be completed by 2036.

Westinghouse had originally also participated in the tender, but the government did not invite it to the next stage of the competition at the beginning of this year. It said the first US bid did not meet the conditions.

"The tender required vendors to certify they possess the right to transfer and sublicense the nuclear technology offered in their bids to CEZ and local suppliers. KHNP’s APR1000 and APR1400 plant designs utilize Westinghouse-licensed Generation II System 80 technology. KHNP neither owns the underlying technology nor has the right to sublicense it to a third party without Westinghouse consent," Westinghouse said on its website today.

In addition, the selection of KHNP would also mean that the creation of tens of thousands of Czech and US jobs would be moved to South Korea, Westinghouse added.

Westinghouse also said it would continue the dispute of both firms over technology in the ongoing international arbitration. A decision in the arbitration is not expected before the second half of next year, it added.

KHNP said in July that it had a different opinion regarding the right to use the technology, but it also declared that it would comply with the US rules. CEZ said earlier regarding the dispute that it had received a confirmation of technology ownership from the Koreans as well as a contractual obligation of potential indemnification.

tam/er