Controversial ‘Czech nuclear plant’ project... Daewoo E&C union raises suspicions: “Was the contractor replacement planned in advance?”

[Financial News] The Daewoo Engineering & Construction (Daewoo E&C) labor union has raised suspicions that Korea Hydro & Nuclear Power (KHNP) contacted a specific major construction company in advance to replace the contractor, in connection with the collapse of negotiations over the construction contract for the Dukovany nuclear power plant project in the Czech Republic. In other words, the allegation is that negotiations were deliberately driven to a breakdown with a contractor replacement in mind.
Sim Sang-cheol, chairman of the Daewoo E&C labor union, made the claim at a press conference at the National Assembly on the 9th. He said, “We are hearing accounts and receiving tips from numerous subcontractors in the nuclear power industry indicating that, even before the breakdown in negotiations was officially announced, they had already been contacted in advance by a particular major construction company to prepare for the Czech project.”
He added, “No sooner had negotiations with Daewoo E&C collapsed than a particular major construction company appeared, seemingly waiting for the moment, and announced its intention to participate in next year’s bidding. This has raised suspicions that KHNP had drawn up a scenario from the outset to transfer the construction rights to a particular major construction company and deliberately driven negotiations with Daewoo E&C to a breakdown.”
Meanwhile, Daewoo E&C and its union have called on the government to mediate renewed negotiations and improve the system. They are urging the government to immediately set up a negotiating table for renewed talks between KHNP and Daewoo E&C. They have also asked the government and the National Assembly to establish “Public Nuclear Power Procurement Risk-Sharing Guidelines” to prevent public corporations from unilaterally shifting risks.
Meanwhile, Daewoo E&C has been involved in efforts to secure a Czech nuclear power plant contract as a member of “Team Korea” since 2018. The company says that, under KHNP’s Limited Notice to Proceed (LNTP) issued in July last year, it assigned dedicated personnel both in the Czech Republic and in South Korea, and has carried out preliminary work after fronting several tens of billions of won without receiving payment.
The union also alleges that KHNP demanded that the contractor, which is not responsible for the design, accept a substantial increase in the construction workload without any change in construction costs, and take on additional work added after the bid without any cost adjustment.
[email protected] Lee Jong-bae Reporter