The Czech Republic has formally signed final contracts with South Korea’s Korea Hydro & Nuclear Power (KHNP) for the construction of two new nuclear reactors at the Dukovany power plant, just hours after the Supreme Administrative Court lifted a court-ordered injunction that had temporarily blocked the deal.
The signing follows a long legal and political battle, with French company EDF challenging the tender process after losing out on the contract, and the European Commission raising concerns over alleged foreign subsidies.
The €16.5 billion project, Czechia’s largest domestic investment to date, will see KHNP build two new nuclear units, with the first expected to be completed by 2036. KHNP beat EDF and U.S.-based Westinghouse in a competitive tender process concluded last year.
The contract was originally scheduled for signing in early May, but was frozen when EDF filed a lawsuit questioning the ruling of the Czech anti-monopoly office. The Regional Court in Brno issued a preliminary injunction, which the Supreme Administrative Court annulled on Monday after cassation complaints were filed by the project company EDU II and KHNP.
Minister of Industry and Trade Lukáš Vlček (STAN) justified the government rubber-stamping the deal despite pending legal challenges, insisting it needed to seize the “open window of opportunity.”
The European Commission had urged the Czech government to delay finalizing the contract, citing ongoing concerns that KHNP may have received state aid that violates EU internal market rules. In a letter dated May 2, Commission Vice-President Stéphane Séjourné warned of “significant indications” that KHNP had been “granted foreign subsidies that may distort the internal market.”
As the Commission’s investigation is still in a preliminary phase, it stressed that proceeding with the deal could have “irreversible effects” and undermine the effective application of EU regulations.
However, the timing and tone of the letter — sent late on a Friday evening by a French commissioner — fueled accusations in Prague that the EU’s objections were politically motivated and linked to France’s failure to win the bid.
Last month, Czech President Petr Pavel warned that France’s actions “may lead not only to a relatively long delay but, in the worst case, to the freezing and paralysis of the entire project,” potentially threatening Czech energy security.
The ANO opposition party, currently leading in polls ahead of October’s election, had vowed to respect the original tender outcome if it returns to power, warning against any move to reopen the process under foreign pressure.
EDF’s legal challenge is set to be heard on June 25, which could still derail the project.
The post Czechia signs nuclear deal with South Korea’s KHNP after court clears path, amid French protests and EU pressure appeared first on Remix News.
Remix News
