The biggest tender in modern history has a winner. Dukovany will be supplied by the Korean company KHNP

The biggest tender in modern history has a winner.  Dukovany will be supplied by the Korean company KHNP

The new nuclear units in Dukovany will be built by the Korean company KHNP. For now, it will be two reactors, but the government will still negotiate with the winner regarding the option to build two more units in Temelín. The price for one reactor in the construction of two blocks is 200 billion crowns at current prices.

According to Prime Minister Petr Fiala (ODS), the government leaned towards the recommendations of the ČEZ companies, which analyzed the bids in the spring. “The Korean offer was better in virtually all the criteria evaluated,” he said. It will be the largest and most expensive contract in the modern Czech Republic.

Construction of the first reactor should begin in 2029, and trial operation should begin in 2036.

The cabinet has now decided on the construction of two reactors in Dukovany, because according to Fiala, the offer showed that it would be more advantageous to build two units on the same site. ČEZ, which is in charge of the tender, will also negotiate with the winning supplier in the next three to five years regarding the option for two more reactors in Temelín.

With the preferred option of building two reactors, according to Fiala, the construction of one unit should cost approximately 200 billion crowns. It is a calculation of costs at current prices, so the order may become more expensive in the future. According to government estimates from 2020, one reactor should cost 160 billion crowns at the prices of the time. According to the government, the increase to the current price was caused by inflation and other factors.

In response to its success in the tender, the winning KHNP stated that it would strive to involve as many Czech companies and workers as possible. So far, it has identified 200 Czech companies for cooperation and concluded 76 memoranda of understanding. The Pilsen company Doosan Škoda Power announced today that it will be the turbine supplier for the two new units in Dukovany.

The Czech Republic currently has six nuclear units in two power plants. Two units, each with a capacity of approximately 1,000 megawatts (MW), are located in Temelín in South Bohemia. Four smaller blocks with an output of 510 MW are located in Dukovany in the Třebíč region. In addition to new classic reactors, ČEZ is also preparing the construction of small modular reactors. The first of them should be created in Temelín.

The budgeted costs for the preparatory work for two new nuclear units will total 80 to 85 billion crowns in the next five years. It will not be necessary to take extraordinary budgetary measures because of this, Finance Minister Zbyněk Stanjura (ODS) told journalists. He also emphasized that KHNP offered better terms of payment for new reactors. According to him, the state will pay the costs only for the work done.

KHNP is a state-owned company, operating nuclear and water resources that cover nearly 30 percent of Korea’s supply. The firm currently operates 24 nuclear units in Korea and is building another five, both domestically and in the United Arab Emirates.

The government coalition with the opposition praises the choice of KHNP

Minister of Labor and Social Affairs and Chairman of KDU-ČSL Marian Jurečka described the government’s decision as one of the most important in energy in modern history. “We want to be able to have safe and affordable energy supplies, and at the same time, the high involvement of our industry is important for us, not only in this construction in Dukovany,” he said on sewing X.

According to Jurečka, there was nothing to hesitate regarding. “At the government meeting, I supported the investor’s recommendation, the KHNP offer was clearly better,” he noted.

Deputy Prime Minister, Minister of the Interior and head of STAN Vít Rakušan completely agrees with the decision and arguments of Prime Minister Petr Fiala (ODS).

The president of TOP 09 and the Chamber of Deputies, Markéta Pekarová Adamová, said on Wednesday: “A comparison of both offers showed that KHNP’s offer was clearly better in practically every aspect – from the price of the resulting energy to the degree of involvement of Czech companies.”

Vice-chairman of the opposition movement ANO and former Minister of Industry and Trade and Transport Karel Havlíček said of the selection, he is glad that a decision has finally been made. “The Dukovany project is completely behind our government, it was prepared by my team, which I congratulate on completing the tender.”

He appreciated that the option was used and two blocks will be built. “KHNP gave a good offer, it corresponds to the price we predicted in 2020 plus inflation,” he noted.

The decision was also supported by the Minister for Science, Research and Innovation Marek Ženíšek (TOP 09). “I remind you that the previous government considered Russian Rosatom. Based on the documents, I am convinced that this is the most advantageous option. It is also a huge opportunity for research in the Czech Republic,” he pointed out on sewing X.

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