South Korea’s Korea Hydro & Nuclear Power (KHNP), the main contractor for two new nuclear units at Dukovany, announced on October 29, 2026, that it had terminated negotiations with a consortium comprising Daewoo Engineering & Construction and Doosan Enerbility. The decision followed ongoing disagreements over construction costs and responsibility for potential cost overruns.

KHNP demanded a fixed-price contract, while Daewoo sought flexibility to adjust prices according to the actual scope of work. According to South Korean media, the difference between the parties’ positions exceeded one trillion Korean won, approximately CZK 15 billion. KHNP reportedly requested a reduction of more than 10% from the original offer.

Importantly, the main contract between KHNP and the Czech project investor, Elektrárna Dukovany II, remains valid. The termination of negotiations does not automatically mean higher project costs or delays.

Doosan Enerbility also confirmed that its separate contracts for the production and supply of reactor equipment, turbines and generators remain unaffected.

KHNP is now preparing to select a new construction contractor, aiming to conclude an agreement by July 2027. In the meantime, the company plans to manage essential preparatory work independently.

Although KHNP maintains that the original schedule remains achievable, replacing the contractor introduces significant risks. Any new partner will need to familiarise itself with extensive technical documentation and meet stringent nuclear safety requirements.

The key challenge will be securing a new construction partner under acceptable financial conditions without significantly affecting the project's completion schedule.

The text was prepared using AI tools based on the cited sources and underwent editorial review by CzechBusiness Turkiye.

Source: Energetika.tzb