[Edaily Reporter Ham Ji-Hyun ] After Korea Hydro & Nuclear Power officially announced that negotiations for the construction contract for the main facilities of the new Dukovany nuclear power plant project in the Czech Republic had broken down, the construction consortium consisting of DaewooEngineering&Construction(047040) andDOOSAN ENERBILITY(034020) has voiced its opposition.

On the 29th, the construction consortium stated, “Since being selected as a construction partner for Team Korea’s new Czech nuclear power plant project in 2018, we have participated with all our capabilities as a construction partner,” adding, “However, we deeply regret that KHNP has declared the breakdown of negotiations regarding the subcontract for the main equipment construction with the construction consortium.”

They explained, “We had communicated our willingness to accept the construction unit prices submitted to KHNP, the prime contractor, in January 2024,” and added, “We made every effort to conclude the subcontract with the prime contractor, even submitting a revised contract proposal—reduced to an amount the construction consortium could absorb as a loss—by the deadline set by the prime contractor for contract negotiations.”

They continued, “What we find most regrettable is that we were not given sufficient time to review the contract presented by the prime contractor on the 7th, which included revised subcontracting terms,” and “Although the prime contractor maintains that it has engaged in continuous consultations with the construction consortium for over a year and that the consortium failed to properly review these discussions, the prime contractor did not explain why it presented the revised terms in early October,” he pointed out.

Furthermore, he said, “The construction consortium earnestly requested, via a formal written notice, that the negotiation deadline be extended until December 31, 2026, to allow for a detailed review of the amended terms presented by the prime contractor,” adding, “However, the prime contractor did not accept this request.”

Furthermore, the representative noted, “Since the new nuclear power plant construction project in the Czech Republic is the world’s first commercial nuclear power plant to utilize the APR1000 model, the construction cost, schedule, and scope must be finalized through thorough advance preparation and investigation,” “Nevertheless, demanding that the construction consortium finalize its position and conclude negotiations within a mere three weeks—without sufficient time guaranteed for such review—was an utterly unrealistic demand,” he pointed out.

He further noted, “The prime contractor claims that a lump-sum construction contract is a contract method that aligns with global standards,” but pointed out, “However, requiring a simple construction consortium—which has absolutely no involvement in the basic or detailed design process of the APR1000 model, the first of its kind to be built globally—to bear a high proportion of the increased construction volume resulting from design changes without any adjustment to the construction cost does not align with global standards.”

The consortium emphasized, “The conditions newly proposed by the prime contractor inherently carried risks severe enough to threaten the survival of private companies, making a more detailed review and additional time necessary,” and stated, “Nevertheless, we cannot accept the prime contractor’s unilateral announcement that negotiations have broken down without extending the negotiation deadline.”

They continued, “Even though the environment for contract negotiations changed drastically when the client presented the revised contract terms in early October 2026, the client’s stance that it will not engage in any further negotiations unless the consortium accepts its proposal is inconsistent with the principle of good faith in contracting,” and “The construction consortium requests that the prime contractor, even at this late stage, resume amicable negotiations with the consortium for the sake of the greater good and the national interest,” he added.