Consortium says it submitted revised offer accepting losses before deadline

'Lump-sum contract not global standard,' group says

Prime contractor's terms carry risk that threatens company survival, consortium warns

Daewoo Engineering & Construction headquarters [Daewoo E&C]
Daewoo Engineering & Construction headquarters [Daewoo E&C]

A consortium of Daewoo Engineering & Construction and Doosan Enerbility said Thursday it found Korea Hydro & Nuclear Power's decision to end construction contract negotiations for the Czech Dukovany nuclear power plant "deeply regrettable" and rejected the move as unacceptable.

The consortium issued a statement after Korea Hydro & Nuclear Power, known as KHNP, announced the breakdown, saying it had "made every effort to conclude a subcontract with the prime contractor, including submitting a revised contract proposal with costs reduced to a level the construction consortium could absorb at a loss" — all before the Oct. 29 deadline KHNP itself had set.

The consortium said it had "devoted all its capabilities" to the project since being selected as a construction partner for Team Korea's Czech nuclear power plant bid in 2018, through its designation as preferred negotiating partner in May 2024 and the signing of the main contract in June 2025. "Nevertheless, KHNP, as the prime contractor, has declared a breakdown in subcontract negotiations with the construction consortium," it said.

The consortium also said it had not been given sufficient time to review the revised contract terms KHNP presented on Oct. 7.

The consortium said it had formally requested, through official correspondence, that the negotiation deadline be extended to Dec. 31 to allow for a thorough review of the revised terms — a request KHNP declined.

The consortium said the Czech nuclear power plant project deserves particular scrutiny because it will be the world's first commercial nuclear plant to use the APR1000 model, meaning construction costs, timelines and scope must be finalized only after thorough preparation and investigation.

"Demanding that the construction consortium finalize its position and conclude negotiations within a mere three weeks is simply not realistic," the consortium said, adding that requiring a contractor with no involvement in the basic or detailed design of the APR1000 model to absorb a large share of cost increases arising from design changes — without any adjustment to the contract price — "would not conform to global standards."

The consortium said the prime contractor's newly revised terms carried risks that "threaten the survival of a private company," making careful review and additional time essential.

"We cannot accept the prime contractor's unilateral announcement of a breakdown without granting any extension of the negotiation period," the consortium said, adding that refusing to hold further talks unless the consortium accepts the proposed terms "runs counter to the principle of good faith in contracting."

The consortium closed by urging KHNP to "once again engage in good-faith negotiations with the construction consortium, if not for broader considerations, then at least for the national interest."

Meanwhile, KHNP said Thursday it would prepare a new tender and directly handle essential work until a new contractor is selected.


lucky@heraldcorp.com