In a recent development, American company Westinghouse has contested the decision by Czech energy company ČEZ to select South Korea’s KHNP as the preferred bidder for the construction of new nuclear reactors in Czechia. Westinghouse has filed an appeal with the Office for the Protection of Competition (ÚOHS), challenging the selection process.

According to ČEZ, such an appeal is not permissible due to the security exemption within the tender, preventing unsuccessful bidders from challenging the process at ÚOHS. This exemption is a significant factor in the ongoing dispute.

The Westinghouse’s objection revolves around the licensing of technology for the new nuclear reactors. The Korean nuclear program is largely based on American technology as both countries have a long-standing collaboration in the nuclear sector. The conflict arose when KHNP started promoting its reactors internationally. Westinghouse's decision for legal action came after KHNP offered its reactor technology to Poland.

Westinghouse argues that KHNP requires permission to build its APR-type reactors outside South Korea. The two APR 1000 reactors planned for Dukovany, and potentially Temelín NPP, are at the heart of this dispute. Westinghouse claims that KHNP does not own the original technology and cannot sublicense it without Westinghouse’s consent. KHNP, on the other hand, contends that its APR technology has been sufficiently modified and is distinct from the original American design, negating the need for export permission.

The disagreement between the two companies has been ongoing for some time and was a significant issue during the selection process for the largest tender in Czech history. Ultimately, the Czech government sided with ČEZ’s decision in July, confirming KHNP as the preferred bidder. Government officials stated that the Korean offer was superior in all evaluation criteria. However, by then, KHNP was competing solely with French company EDF, as Westinghouse’s bid had been disqualified in January for failing to meet the tender conditions.

Source: hn.cz

Author: CzechTrade office in New York