Doosan Enerbility: “Daewoo E&C’s position on the Czech nuclear plant is unrelated to us; we will participate in the rebidding”

[Financial News] A statement issued in the consortium’s name protested the collapse of negotiations for a construction contract for a new nuclear power plant in the Czech Republic. Doosan Enerbility, a member of the consortium, issued a separate statement, saying the document had been prepared and distributed without prior consultation with the company. It drew a line between itself and Daewoo E&C, which had objected to Korea Hydro & Nuclear Power’s decision to end the negotiations, and said it would participate in the subsequent bidding.
In a statement on the 29th, Doosan Enerbility said, “The press release issued in the consortium’s name regarding negotiations for the construction contract for the new Czech nuclear power plant, which was distributed to media outlets this morning, was released by Daewoo E&C, the lead construction company, without prior consultation with us,” adding, “The contents of that release have nothing to do with Doosan Enerbility’s official position.”
Earlier that day, KHNP announced that it was ending negotiations on a construction contract for a new nuclear power plant at Dukovany in the Czech Republic with the Daewoo E&C–Doosan Enerbility consortium. KHNP said that although working-level negotiations, a committee to resolve differences, and executive-level negotiations had been held over key contract terms, the parties had failed to reach a final agreement. KHNP said it would begin preparing for a tender to select a new construction company, along with the process of terminating the existing joint cooperation agreement.
In response, Daewoo E&C said in a press release issued in the consortium’s name that KHNP had announced the breakdown unilaterally without further extending the negotiation period, expressing regret and saying it could not accept the decision. It said it had received revised contract terms on the 7th of this month and needed sufficient time to review them; it had requested an extension of the negotiation deadline until December 31 but was turned down. It also objected to a condition requiring the construction company to bear a large share of the increased volume of construction work resulting from design changes without any adjustment to construction costs.
In this regard, Doosan Enerbility said its role in the construction contract negotiations had been limited. The company said, “Negotiations on the terms of the construction contract for the new Czech nuclear power plant have been conducted by the client, Korea Hydro & Nuclear Power, and the lead company, Daewoo E&C,” adding, “As a non-lead consortium member, we have supported the lead company and played a limited role.”
It also made clear that it intended to participate in the rebidding. Doosan Enerbility said, “We deeply share the view that the new Czech nuclear power plant project is important and needs to be carried out successfully,” adding, “As the client has stated that existing consortium members will also be allowed to participate in the rebidding, we will prepare diligently, submit a bid, and do our utmost to complete the project successfully.”
It said that, separately from the end of the construction contract negotiations, preparations for supplying the major equipment were proceeding as planned. Doosan Enerbility said, “The contract to supply major equipment, including the reactor, for the new Czech nuclear power plant was signed last December, and preparations are proceeding normally.”
[email protected] Jung Won-il Reporter