(2nd LD) KHNP ends talks with consortium on Czech nuclear plant construction contract

(ATTN: UPDATES with executive comment in 4th para)

SEOUL, Oct. 29 (Yonhap) -- Korea Hydro & Nuclear Power Co. (KHNP), South Korea's state-run nuclear power operator, said Thursday it has ended negotiations with a local consortium on a construction contract for a nuclear power plant project in the Czech Republic after the two sides failed to agree on key terms.

"The company has decided to terminate negotiations with a consortium comprising Daewoo Engineering & Construction Co. and Doosan Enerbility Co. for the Dukovany nuclear power plant project. The breakdown is due to differences over key contract terms," KHNP said in a press release.

KHNP said it will formally conclude the negotiations and begin preparations for a tender to select a new contractor.

"We aim to sign a contract with a new consortium for the Czech project within July 2027," Choi Il-kyung, executive vice president of KHNP's overseas business division, said.

The Dukovany project, valued at about 25 trillion won (US$17.5 billion), involves the construction of two 1,000-megawatt APR1000 reactors, a South Korean-designed model, in the Czech Republic.

A South Korean consortium led by KHNP won the project last year. KHNP subsequently negotiated a construction contract with the Daewoo-Doosan consortium, which had been designated as the construction contractor.

"The end of the negotiations does not mean the overall nuclear power plant project has been cancelled as KHNP is preparing follow-up measures," the company said.

The consortium expressed regret over KHNP's decision, saying the nuclear operator had introduced revised contract terms in early October and rejected its request to extend the Oct. 29 deadline before unilaterally ending negotiations.

It argued that the revised terms would unfairly burden construction contractors with additional costs arising from design changes, despite their lack of involvement in the reactor's design.

It also accused KHNP of violating the principle of good faith by refusing further talks unless the consortium accepted the revised terms, urging the nuclear operator to resume negotiations in the broader national interest.

In a Facebook post, Industry Minister Kim Jung-kwan said he respects KHNP's decision and pledged government support for the successful construction of the nuclear power plant in the Czech Republic.

kyongae.choi@yna.co.kr
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