The Czech government selected Korea Hydro & Nuclear Power (KHNP) as its preferred bidder in July 2024 for the project and awarded KHNP the KRW26 trillion (USD19.4 billion) contract in June 2025. Daewoo Engineering & Construction and Doosan Enerbility had been selected as construction partners in 2018 and participated in the bidding process.
However, KHNP and the Daewoo-Doosan consortium have since failed to agree on key subcontract terms. The dispute involved not only construction costs but also the contract structure, scope of work, baseline quantities and how the main contract’s terms would be reflected in the construction contract. KHNP proposed a lump sum contract based on baseline quantities established at the basic design stage, arguing that it would align the construction contract with the main project agreement and provide greater cost certainty. The consortium sought to adjust payments based on quantities determined at the detailed design stage, including increases in construction volumes.
“KHNP and the construction consortium had worked to reach an amicable agreement through working-level negotiations, a dispute mediation committee and management-level talks, but failed to reach a final agreement,” KHNP said in a statement. “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.”
The company said it plans to select a replacement contractor by July 2027, with a briefing for prospective bidders scheduled for January and bidding set to open in April, although the detailed process and timeline have not been finalised. KHNP said it would work closely with Elektrarna Dukovany II, the Czech state-run company in charge of the project, to keep the project on schedule, with site preparation due to begin in January 2028 and full construction scheduled to start in November 2029. The two reactors are slated for completion in 2039 and 2040, respectively.
In a statement, Daewoo A&E said KHNP shifted the burden of costs associated with design changes onto the contractor while failing to adequately account for increased construction quantities. “KHNP had requested that the risk contingency be excluded from the contractor’s estimate, indicating that they would reflect it in their own bid”. It noted that it has “conveyed our position to KHNP that we intend to continue discussions regarding this matter.”
Doosan Enerbility said: “We deeply share the view that the new Czech nuclear power plant project is important and needs to be carried out successfully. As the client has stated that existing consortium members will also be allowed to participate in the rebidding, we will prepare diligently, submit a bid, and do our utmost to complete the project successfully.”
It noted that KHNP’s decision “has no relation to and does not affect the reactor equipment supply contract and the turbine generator equipment supply contract entered into between the company and KHNP. The Company entered into the reactor equipment supply contract and the turbine generator equipment supply contract with KHNP for the Dukovany New Nuclear Power Plant Project in Czech Republic on 16 December 2025, and such equipment supply contracts remain in effect without any amendment or termination.”
