The semi-state energy company ČEZ started negotiations with the Korean company KHNP on a contract for the construction of two nuclear reactors in Dukovany. The agreement is expected to be signed by the end of March next year.

Representatives of the Czech government also met with the management of the Korean company. The Cabinet appealed to ensure the strong participation of Czech companies in the project, said Prime Minister Petr Fiala. It will be the largest contract since the founding of the Czech Republic.
KHNP won the nuclear tender in which the Czech government gave it priority over the French company EDF. The construction of two reactors in Dukovany is currently under consideration, the first of which should be completed in 2036.

The costs of the currently preferred construction of two reactors are 400 billion crowns at current prices. However, in the next three to five years, according to the government's decision, ČEZ should also discuss with the Koreans the option of building two more units in Temelín.
The first negotiations on the contract thus started exactly one week after the government announced the result of the nuclear tender. The companies did not say what topic the negotiations started with.

According to earlier information, ČEZ would like to have the final wording of the contract ready in the first months of next year, when the government should receive it for consideration at the turn of February or March. The signing of the agreement is then expected at the end of March.
Representatives of the Czech government, including both the Prime Minister and Minister of Industry and Trade Jozef Síkela, also met with the KHNP management. According to the Prime Minister, the Czech side emphasized the interest in the widest possible involvement of Czech industry during the meeting.

"Therefore, we talked about specific examples of cooperation with local suppliers, such as Škoda JS and many others. Supporting the Czech economy is key, and the Korean side has assured us that approximately 60 percent of this strategic investment will be made by domestic companies. This must be observed," said Fiala on the X social network after the meeting.

Síkela also confirmed the meeting, which was attended on behalf of the Korean side by KHNP head Chu Ho-wang and Korean Industry Minister Ahn Duk-geun among others.

"We immediately started working together to sign all contracts related to the project by the end of March in accordance with the schedule and to discuss further economic cooperation between our countries," said the Czech minister on the X network. He also recalled the Czech effort and the strong involvement of the domestic industry.

ČEZ, which is the main investor in the project through its subsidiary Elektrárna Dukovany II, is currently also deciding how to finance both buildings with the final plan formulated by the end of this year.

According to preliminary plans, the construction should be financed by the state in the form of repayable loans. For one nuclear block, the Czech Republic has the conditions of public support approved by the European Commission, for the second block it wants to request a so-called notification as soon as possible.

Currently, four nuclear units are operating in Dukovany, each of which has an output of 510 megawatts. Each of the new reactors offered by KHNP should have a capacity of 1050 MW. The other two units, each with an output of approximately 1,000 megawatts, are in Temelín in South Bohemia.
In addition to new classic reactors, ČEZ is also preparing the construction of small modular reactors. The first of them should be created in Temelín.

Source: Forbes
Prepared by the team of foreign office CzechTrade and CzechInvest Seoul