Korea Hydro & Nuclear Power chief says construction schedule can still be met

Minister of Trade, Industry and Energy Kim Jung-kwan answers questions from lawmakers at a plenary session of the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee on Monday. [Yonhap]
Minister of Trade, Industry and Energy Kim Jung-kwan answers questions from lawmakers at a plenary session of the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee on Monday. [Yonhap]

Minister of Trade, Industry and Energy Kim Jung-kwan said Monday that the Czech Dukovany nuclear power plant project will not fall apart, despite mounting concerns after construction contract negotiations broke down.

Speaking at a plenary session of the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee, Kim responded to a question from People Power Party lawmaker and committee chair Kim Seong-won, who asked who would be responsible if the Czech nuclear project collapsed. "We must make sure it does not fall apart," Kim said. "Let me be clear — it will not fall apart."

Korea Hydro & Nuclear Power selected a consortium of Daewoo Engineering & Construction and Doosan Enerbility as the contractor for the Dukovany project in 2018 and signed a Team Korea joint cooperation agreement. The consortium formally entered the bidding process in 2022 and was named the preferred bidder in July 2024. Last June, KHNP signed a final contract with the Czech client, EDU II.

However, KHNP announced Oct. 29 that it would terminate construction contract negotiations with the Daewoo E&C and Doosan Enerbility consortium, saying the two sides had "failed to reach a final agreement on key contract terms." The parties were unable to bridge differences over construction costs, contract structure and scope of work.

Kim acknowledged limits on the government's direct involvement. "There are limits to how much we can intervene," he said, adding that the government is also working to amend the Nuclear Energy Industry Promotion Act to establish a legal basis for participating in disputes.

"We will make sure this does not fall apart," Kim said. "Going forward, the Ministry of Trade, Industry and Energy will work together with KHNP and the Team Korea members to make this project happen without fail. We will ensure the public has nothing to worry about."

Lawmakers also pressed officials on whether the collapse of the construction contract negotiations between KHNP and Daewoo E&C could delay the project schedule.

People Power Party lawmaker Yun Han-hong asked whether negotiations with Daewoo E&C had been terminated over a construction cost gap of around 1 trillion won ($736 million) after 15 months of talks, and whether Daewoo E&C would be removed entirely from Team Korea.

KHNP President Kim Hoe-cheon said the negotiations themselves had concluded and that internal procedures to formally terminate the contract still remained. "It will take about a month to go from the end of negotiations to the termination of the contract," Kim said.

When Yun asked whether the project schedule could still be met if a new contractor selection process were launched, Kim said, "Working backward from the timeline, we believe it is possible."


oskymoon@heraldcorp.com