Westinghouse and EDF Challenge Czech Republic KHNP Reactor Tender Decision

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Westinghouse and EDF Challenge Czech Republic KHNP Reactor Tender Decision

Czech, Westinghouse: Westinghouse and EDF have lodged a formal complaint with the Czech anti-trust office (UOHS) challenging the decision to award South Korea's KHNP the contract for constructing two new reactors at the Dukovany nuclear power plant, part of a €16 billion project.

The UOHS has acknowledged receipt of the complaints from both Westinghouse and EDF regarding the tender process for the nuclear units. UOHS spokesperson Martin Svanda confirmed to the Czech Press Agency (CTK) that these filings were officially received.

In July, the Czech government decided to proceed with KHNP for the Dukovany expansion, following a recommendation from the state-owned energy firm CEZ, which manages the tender. This decision came after Westinghouse was unexpectedly excluded from the bidding in January. With each nuclear unit priced at CZK200 billion (€8 billion), this project is set to be the largest investment in Czech history.

According to a report by The Korea Times on August 27, Westinghouse contends that KHNP lacks the rights to export its technology. KHNP's APR100 and APR1400 designs incorporate Westinghouse-licensed Generation II System 80 technology. Westinghouse asserts that KHNP does not own this technology or possess the right to sublicense it without Westinghouse's permission. The dispute involves international arbitration over intellectual property rights, with both companies currently engaged in negotiations.

The Korea Times also noted that, in accordance with agreements and regulations set by the Nuclear Suppliers Group, Seoul must secure approval from the U.S. Department of Energy to export nuclear technology.

Czech energy analysts have raised concerns that these disputes could delay the Dukovany project, which already has a tight completion schedule. However, the Czech government remains optimistic about staying on track. Minister of Transportation Martin Kupka, from the ODS party, emphasized that 200 experts in law, economics, and energy were involved in the selection process, which has faced scrutiny from the Czech branch of Transparency International, a corruption watchdog.

CEZ maintains that the tender process was conducted under a security exemption, allowing the Czech government and CEZ to bypass certain public procurement regulations. CEZ spokesperson Ladislav Kriz stated that, due to this exemption, the procurement process cannot be challenged at UOHS.

Rebeka Hengalova, an energy analyst at Europeum, an EU-focused think tank based in Prague, told bne IntelliNews that the Czech Republic has not disclosed the criteria for selecting KHNP, making it difficult to assess the decision based on available public information.

When KHNP was chosen in July, Prime Minister Petr Fiala (ODS) stated that the Korean bid excelled in nearly all evaluated criteria.

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