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The Czech government is scrambling to address a huge legal and political dispute threatening to delay the country’s largest infrastructure project: the construction of two new nuclear reactors at the Dukovany power plant. The issue has been dominating Czech headlines for weeks and is coming to a head.
What’s the background?
The Dukovany project, slated to deliver its first new reactor by 2036, is crucial to Czech energy policy. The Dukovany nuclear power station is the country’s second-largest nuclear facility.
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At the center of the issue is a court-ordered block on the signing of a contract with South Korea’s Korea Hydro & Nuclear Power (KHNP), which originally won a state tender to build the reactors. This would be Czechia’s largest ever energy investment.
The deal, valued at more than CZK 400 billion, was set to proceed on May 7. However, the Regional Court in Brno issued a preliminary injunction after a legal complaint from France’s EDF, one of the losing bidders.
Why was there an appeal?
EDF claims KHNP may have received foreign subsidies, potentially violating EU competition rules. The French company, which lost to KHNP in the final round of the tender last year, has asked the European Commission (EC) to investigate.
The opposition ANO party has hinted at corruption on the side of the current incumbent government, and has urged Prime Minister Petr Fiala to hold off on signing a new contract until after the current government serves its term.
What does the government say?
Czech Industry and Trade Minister Lukáš Vlček, speaking in Brussels on Tuesday, stressed that completing the Dukovany expansion is a top priority for the government. “This is not the opinion of the European Commission, it is the opinion of the French EU Commissioner towards the Czech Republic,” Vlcek said, referring to a letter sent by EC Vice President Stephane Sejourne urging a delay in the contract signing.
Vlcek added that the Czech government stands behind the integrity of the tender process. “We believe the tender was well designed and we have a very good offer. It rather gives me the impression that EDF does not want a competitor on the European market,” he said.
What happens now?
The controversy has prompted high-level diplomatic engagement. Czech Prime Minister Petr Fiala is set to discuss the matter with European Commission President Ursula von der Leyen at a summit in Albania on Friday. Meanwhile, President Petr Pavel said von der Leyen assured him the Commission would handle the situation “quickly and transparently.”
No formal investigation by the EC has been launched yet, but a spokesperson confirmed that such a move would be announced via press release.
