The European Commission (EC) has requested that the Czech Republic delay finalising a significant nuclear power plant (NPP) contract with South Korea’s KHNP, valued at a minimum of $18bn (Kč 402.21bn).
This development follows a complaint from France’s EDF, a competing bidder, and concerns the potential use of foreign subsidies, according to a report by Reuters, citing sources.
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The commission’s spokesperson confirmed the intervention by Commissioner for Industrial Strategy Stephane Sejourne, initially reported by the Czech news agency CTK.
The spokesperson was quoted as saying: “We are raising concerns under the rules of the foreign subsidies regulation regarding the South Korean bidder,” clarifying that the timeline for the investigation remains undetermined and that an in-depth probe has not yet commenced.
The contract in question is part of the Czech Republic’s largest public procurement, aiming to phase out coal and update old nuclear facilities.
A Czech regional court has already provisionally halted CEZ, a majority state-owned electricity company, from signing with KHNP until it addresses EDF’s tender process-related complaint.
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By GlobalDataDespite the EC’s request, Czech Prime Minister Petr Fiala indicated that the letter from Commissioner Sejourne does not reflect the official stance of the EC and is not legally binding, the report said.
Meanwhile, KHNP expressed confidence in its adherence to the bidding process.
EDU II, a CEZ subsidiary established to construct the plant, has urged EDF to disclose its own bid, labelling the French company’s complaint as speculative.
The Czech Government recently agreed to acquire an 80% stake in EDU II from CEZ to alleviate the utility’s financial strain. CEZ will retain a 20% share and manage the plant’s construction.
According to the report, EDU II has suggested that EDF’s true motive may be to prevent the construction of an NPP in the Czech Republic.
CEZ has warned that it will seek compensation from EDF for any delays, which could jeopardise the planned 2036 completion of the first of the two proposed 1,063MW units.
