17 July 2020
- KHNP has been officially selected as the preferred bidder for the Czech Republic’s nuclear new build project.
- This decision indicates that KHNP has attained the status to exclusively negotiate with the project owner to finalize the contract for building Dukovany Units 5 and 6 in the country.
- KHNP official believes that the new nuclear units will contribute to meeting the Czech Republic’s energy needs while also reducing carbon emissions.
- As before, KHNP wants to continue its efforts to maximise the involvement of Czech companies and workers in the project.
KHNP is finally selected as the preferred bidder of the tender for the completion of a nuclear unit in the Czech Republic. KHNP will begin intensive negotiations with the owner of the project according to the announcement from the Czech government to conclude the contract by March 2025. According to the Czech government, the total project cost estimated by the Czech side amounts to around 200 billion CZK for a unit, and around 400 billion CZK for two units. The final contract value will be decided after the contract negotiations with KHNP. The total project cost calculated by the Czech government, which includes construction cost and contingency allowance, does not show the contract value with the vendor. The final contract amount may vary depending on the outcome of the contract negotiations. For KHNP, this opportunity could represent the first contract to build nuclear power plants in Europe. Now KHNP is ready to support to provide clean, reliable and affordable energy to the Czech Republic.
"The Czech government selected KHNP as the preferred bidder based on our internationally recognised capabilities in nuclear power plant construction. We are proud that KHNP has been able to become an important player in supporting to meet energy needs and reduce carbon emissions, extending beyond Korea," stated Dr. Jooho Whang, CEO of KHNP. "A nuclear project means long-term cooperation for the next 100 years or so, from construction to operation. The construction of the APR1000 reactors would thus guarantee the long-term development of partnership and friendship for both countries. Thus, a strengthened partnership between the governments of both countries could enable extensive cooperation across a wide range of areas. We see this as a major commitment and will do everything possible in the final negotiations to ensure that the APR1000 reactor is actually built in the Czech Republic," he added.
The APR1000 reactor with an output of 1055 MWe, offered by KHNP, has already received EUR certification last year, confirming that it meets the highest European standards in the areas of safety, economic criteria and constructability. The reactor was designed by KHNP specifically for export to European countries and has been adapted to meet European conditions and requirements based on the latest International Atomic Energy Agency (IAEA) and Western European Nuclear Regulators Association (WENRA) standards.
KHNP wants to deliver on commitments to involve Czech industry
In connection with the construction of the nuclear units, KHNP will continue to seek maximum involvement of Czech companies in the project. Since 2016, KHNP has already identified over 200 potential Czech suppliers and signed more than 76 MoUs with Czech companies as a basis for future cooperation. These include binding agreements.
Czech companies with which KHNP or its partners have signed agreements are Doosan Škoda Power, ŠKODA JS, Metrostav Diz, OSC, NUVIA, MICO, Sigma Group, ÚJV ？e？, I&C Energo, ZAT, Reko Praha, ABO Valve, VALVEA, Infer, HOCHTIEF, G-Team, etc.
The main turbine, one of the most important equipment in the nuclear power plant, will be supplied by Doosan Skoda Power based on the agreement with KHNP. Through Doosan Skoda Power, KHNP also plans to supply auxiliary equipment, such as the turbine and auxiliary systems, the condenser and feedwater heater, through Czech companies.
Involvement of Czech companies is one of the highest priority tasks of KHNP in the Czech Republic. KHNP will continue to be dedicated to meeting the localisation expectation of the Czech industry. For this, KHNP has actively engaged in this field since 2016 and, together with its Korean partners, has been building partnership with Czech companies through, for example, the development of localisation strategies and programmes, and the hosting of various events such as APR1000 Supplier Symposium, technical seminar, construction forum and Doosan partnership day.
"Cooperation with Czech companies with cutting-edge technological and scientific capabilities is not only one of our top priorities, but also an absolute necessity for the success of the completion of new nuclear units in the Czech Republic," said the Executive Vice President of KHNP Insik Park in May, adding: "We are committed to building the new nuclear units with maximum involvement of Czech companies, making the most of synergies for cooperation, on time and on budget."
The localisation of the project will also concern the workforce. According to KHNP advisory Alois Mika, the company plans to preferably use workers from the Czech Republic or other European countries. "KHNP's plan is to make maximum use of human resources in the Czech Republic. If that is not enough, plan B will follow, i.e. mobilise labour in the European Union or other European countries" Míka explained at the Czech-Korean Nuclear Energy and Cultural Exchange Day in June.
KHNP is actively pursuing constant communication with community members
Alongside efforts to enhance the APR1000’s competitiveness, KHNP has persistently engaged with community members in the region designated for the new nuclear plant. The company’s commitment to sincere communication with the local community is evident through efforts such as sponsoring a local sports team, participating in volunteer activities, and engaging in cultural exchanges. This has garnered trust from a wide range of stakeholders and undoubtedly contributed to the company being selected as the preferred bidder in a positive way....
Read the full news release here
