KHNP drops Daewoo E&C, Doosan Enerbility from Czech nuclear construction

Korea Hydro & Nuclear Power (KHNP) has scrapped construction contract talks with the consortium of Daewoo Engineering & Construction and Doosan Enerbility for the Dukovany nuclear power project in the Czech Republic after more than a year of wrangling over terms failed to produce a deal.

The state-run operator will now look for a new builder for what was hailed as Korea’s biggest nuclear export win in 16 years.

KHNP said Thursday that the two sides failed to reach a final deal on “key contract terms” despite working-level talks, a dispute mediation committee and negotiations between top executives.

“We have begun the process of terminating the joint cooperation agreement with the existing contractors and are preparing comprehensive countermeasures, including preparations for a tender to select a new contractor,” KHNP said Thursday in a statement. 

KHNP did not elaborate on the specific points of contention, but the two sides were at odds over both the contract price and how to allocate the risk of future cost increases, according to local media reports. 

Still, KHNP stressed that the rest of the supply chain remains on track, including negotiations on contracts for nuclear fuel with Kepco Nuclear Fuel and for commissioning and maintenance with Kepco KPS, with signing targeted for 2027.

The breakdown comes one year and four months after KHNP signed the main contract with Elektrárna Dukovany II, a subsidiary of Czech state-controlled utility CEZ, in June 2025.

The deal covers two reactors, Dukovany 5 and 6, with an estimated project cost of about 400 billion koruna ($18.3 billion). The Czech government named KHNP the preferred bidder in July 2024, with the original timeline targeting a construction permit in 2029 and the start of commissioning in late 2036.

The deal was Korea’s first large-scale nuclear plant export since it won the Barakah project in the United Arab Emirates in 2009.

BY SARAH CHEA   [[email protected]]