South Korea introduces emergency management regime after collapse of negotiations over $17.5 billion Czech nuclear project

Emergency mode after the collapse of negotiations

South Korea announced on Monday the introduction of an emergency management system to prevent delays in the $17.5 billion (25 trillion won) nuclear power plant project in the Czech Republic. The move came after contract negotiations failed between the state-run Korea Hydro & Nuclear Power (KHNP) and the consortium of Daewoo Engineering & Construction and Doosan Enerbility, which was to handle construction. The news was reported by the Yonhap agency citing a statement from the Ministry of Trade, Industry and Resources.

What is known about the project and the next steps

The project calls for the construction of two APR1000 reactors with a capacity of 1,000 MW each at the Dukovany site. The consortium led by KHNP won the contract last year, after which negotiations began with the Daewoo–Doosan consortium, designated as the construction contractor. The parties failed to agree on key contract terms, and last week KHNP decided to terminate the negotiations.

New tender and weekly oversight

The ministry said it would develop measures to keep the Dukovany project on schedule and prevent similar contract failures; the first emergency meeting was scheduled for Monday. KHNP will hold a new tender to select a construction contractor and expects to sign an agreement by July 2027, with construction set to begin in November 2027. Industry Minister Kim Jung-kwan stated: 'The minister and vice minister will personally review key project issues every week and take the necessary measures at this point.'