Korea Hydro & Nuclear Power has ended contract negotiations with the Daewoo-Doosan consortium for construction of two APR1000 reactors at the Czech Republic's Dukovany plant and will pick a new contractor, KHNP said on October 29.

The Czech government selected KHNP as preferred bidder in July 2024 and awarded it the KRW26 trillion (USD19.4 billion) contract in June 2025. Daewoo Engineering & Construction and Doosan Enerbility had been named construction partners in 2018 and took part in the bidding.

KHNP sought a lump sum based on basic-design quantities

The two sides failed to agree on key subcontract terms: construction costs, the contract structure, scope of work, baseline quantities, and how the main contract's terms would be reflected in the construction contract. KHNP proposed a lump-sum contract based on quantities set at the basic design stage, which it said would align the construction contract with the main project agreement and give greater cost certainty. The consortium sought payments adjusted to quantities determined at detailed design, including increases in construction volumes.

"KHNP and the construction consortium had worked to reach an amicable agreement through working-level negotiations, a dispute mediation committee and management-level talks, but failed to reach a final agreement," KHNP said. The company has begun terminating the joint cooperation agreement with the existing contractors and is preparing a tender to select a replacement.

Replacement targeted for July 2027

KHNP said it plans to select a new contractor by July 2027, with a briefing for prospective bidders in January and bidding to open in April. It said the detailed process and timeline have not been finalised. Site preparation is due to begin in January 2028 and full construction in November 2029, with the two reactors slated for completion in 2039 and 2040. KHNP said it would work with Elektrarna Dukovany II, the Czech state-run company in charge of the project, to keep the project on schedule.

Daewoo A&E said KHNP shifted the burden of costs associated with design changes onto the contractor while failing to adequately account for increased construction quantities, and said it intends to continue discussions.

Doosan Enerbility said it will bid in the rebid. It said its reactor equipment supply contract and turbine generator equipment supply contract with KHNP, both entered into on December 16, 2025, remain in effect without amendment or termination.