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Highest Czech court says KHNP's nuclear deal can proceed

Published: 04 Jun. 2025, 20:43

Cooling towers operating at the Dukovany nuclear power plant operated by CEZ AS, near the village of Dukovany, Czech Republic, on May 12, 2025 [EPA/YONHAP]

The path is reopening for Korea Hydro & Nuclear Power (KHNP) to finalize a nuclear power plant deal in the Czech Republic after the country’s top administrative court lifted an injunction that had blocked the contract.

On Wednesday, the Supreme Administrative Court of the Czech Republic dissolved a lower court's decision to temporarily halt the signing of a contract between KHNP and the Elektrarna Dukovany II (EDU II) project, a subsidiary of Czech utility CEZ.

KHNP and EDU II had originally planned to sign the final contract on May 7. But the day before, the Brno Regional Court granted a request by EDF, a rival bidder that lost out on the project, suspending the signing until it could rule on the main lawsuit EDF had filed and barring the project from proceeding.

KHNP and EDU II appealed, arguing that the regional court had issued the injunction without hearing both sides and that the delay jeopardized the entire project timeline.

The high court sided with KHNP and EDU II, finding the injunction "illegal and verifiable," as reported by Reuters.

"By cancelling the preliminary injunction with today's judgment, the court lifted the ban on concluding a contract for the fulfillment of a public contract for the construction of a new nuclear power plant in the Dukovany location," the court said.

The Czech government had earlier called for a swift decision, warning that the injunction threatened the country’s largest infrastructure project and its plans for stable electricity supply. The ruling appears to reflect those concerns, with the energy sector also warning of financial and supply risks from further delays.

Cooling towers operating at the Dukovany nuclear power plant operated by CEZ AS, near the village of Dukovany, Czech Republic, on May 12, 2025 [EPA/YONHAP]

With the injunction lifted, the contract between KHNP and the Czech side is now expected to move forward.

"The KHNP welcomes the Czech Supreme Administrative Court's decision to overrule the injunction, and we hope this leads to a swift contract," KHNP said in a statement following the ruling on Wednesday.

The Czech government has already completed the necessary approvals in anticipation of a resumed signing. Prime Minister Petr Fiala recently told local media that the schedule to begin operations in 2036 remains unchanged.

However, the broader legal dispute is not over. The first hearing of EDF's main lawsuit is scheduled for June 25, meaning that the project will likely proceed in the shadow of ongoing litigation.

In addition, EDF has filed a complaint with the European Union alleging that KHNP violated its Foreign Subsidies Regulation. The EU is still reviewing whether to launch a formal investigation.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY YOON SO-YEON [[email protected]]