KHNP ends talks with consortium on Czech nuclear plant construction contract

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.

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.

kyongae.choi@yna.co.kr
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