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Czech antitrust body begins to look into nuclear reactor deal with Korea

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Dukovany Nuclear Power Station in the Czech Republic is seen in this undated photo. Courtesy of Korea Hydro & Nuclear Power

Dukovany Nuclear Power Station in the Czech Republic is seen in this undated photo. Courtesy of Korea Hydro & Nuclear Power

Yoon, Czech special envoy reaffirm mutual strategic partnership
By Anna J. Park

The Czech Republic's antitrust authority has begun to look into Korea's selection as the preferred bidder to build two nuclear power plants in the country, following appeals from U.S. and French bidders.

The complaint is feared to further challenge the $18 billion deal secured by Korea Hydro & Nuclear Power (KHNP) in July, in addition to U.S. bidder Westinghouse's protest over intellectual property (IP) issues related to the nuclear plant construction technologies.

The antitrust body, the Office for the Protection of Competition (UOHS), announced Tuesday (local time) that it launched investigation into the bidding process for the largest procurement deal in the Czech Republic's history — the construction of two 1,000 megawatt nuclear reactors valued at approximately $18 billion. This investigation follows appeals filed by Westinghouse and French energy company Electricité de France (EDF). EDF was one of KHNP's main competitors in the final stages of the bidding for the contract.

"Last week, the UOHS received submissions from Westinghouse Electric Company LLC and Electricité de France challenging the procedure of the contracting authority Elektrárna Dukovany II, in the tender for the construction of a new nuclear power plant," the UOHS said in its official statement.

The UOHS noted that EDF claimed there was a violation of the tender conditions and requested the cancellation of the contracting authority's actions related to the bid evaluation. Westinghouse challenged the contracting authority's procedures, arguing that they were conducted outside the legal framework under the so-called security exception. The U.S. firm also alleged violations of fundamental public procurement principles and errors in the selection of KHNP as the preferred supplier.

"In both cases, administrative proceedings have been initiated, the length of which cannot be predicted at present, given their substantive and procedural complexity," the UOHS said. "Until the first instance decisions are issued, the office will not provide any further information on the progress of these administrative proceedings."

President Yoon Suk Yeol shakes hands with Czech National Security Advisor Tomas Pojar at the presidential office in Seoul, Wednesday. Courtesy of presidential office

President Yoon Suk Yeol shakes hands with Czech National Security Advisor Tomas Pojar at the presidential office in Seoul, Wednesday. Courtesy of presidential office

The UOHS announcement came while Czech National Security Advisor Tomas Pojar is in Seoul meeting with President Yoon Suk Yeol and other Korean officials, ahead of Yoon's visit to the Czech Republic later this month.

Despite protests from U.S. and French energy firms, Yoon and Pojar reaffirmed their commitment to strengthening cooperation across a wide range of areas.

During their meeting at the presidential office in Seoul on Wednesday, Yoon highlighted that the Czech government's selection of KHNP as the preferred bidder for the new nuclear reactors underscores the strong commitment of both countries to deepening their partnership. He also pledged to collaborate actively to ensure the successful completion of the Czech nuclear power project, according to the presidential office.

Yoon expressed his hope that his upcoming visit to the Czech Republic will further strengthen the strategic partnership established in 2015 and result in tangible outcomes that expand mutually beneficial cooperation between the two countries.

In response, Pojar emphasized that the Czech Republic seeks to deepen comprehensive cooperation with Korea beyond the nuclear energy sector, extending into areas such as industry, investments, defense, transportation, and research and development (R&D).

Pojar also expressed confidence in finalizing the contract with Korea for the nuclear power plant construction project, the presidential office said.

Park Ji-won annajpark@koreatimes.co.kr


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