A Czech court has intervened to prevent CEZ, the state-controlled electricity company, from finalising an $18bn contract with South Korea’s Korea Hydro & Nuclear Power (KHNP) for the construction of a new nuclear power plant. This decision comes as a response to a complaint filed by France’s EDF, which lost the bidding process for the project, reported Reuters.
The Brno Regional Court’s ruling halts the signing of the contract, which was scheduled for Wednesday, until it addresses EDF’s complaint regarding the Czech competition regulator, UOHS. The French firm initiated the lawsuit after its appeal to the UOHS was denied.
“If the contract were concluded, the French bidder would inadvertently lose the possibility of winning the public contract, even if the court rules in its favour in litigation,” the Brno Regional Court was quoted by the news agency as saying in a statement.
The court’s decision can be appealed to the Supreme Administrative Court, and CEZ has indicated that it is likely to pursue this option.
Last year, CEZ selected KHNP to construct two 1,000MW reactors at the Dukovany nuclear plant. Since then, EDF has actively sought to challenge this decision through various legal avenues.
Recently, the Czech government agreed to acquire an 80% stake in CEZ’s subsidiary, EDU II, which is designated for the new nuclear units.
Czech Republic Prime Minister Petr Fiala expressed hope for a swift resolution from the court, while UOHS has reiterated its support for its prior decisions.
The tender was conducted under a national security exemption, which allows for the suspension of certain standard procurement protocols. Both CEZ and the government have maintained that KHNP’s proposal outperformed EDF’s across most evaluation criteria.
Meanwhile, EDF has welcomed the court’s ruling.
CEZ has stated its intention to seek damages if the courts ultimately favour its selection of KHNP. Additionally, KHNP also reserves the right to initiate its own legal actions.
