Czech nuclear plant tender hits hurdle over China, Russia participation (updated)

KEPCO Engineering & Construction Co

09/12/2020 14:44

(Adds quote, opposition, CEZ, background)
    By Jan Lopatka
    PRAGUE, Dec 9 (Reuters) - A Czech tender to build a new
nuclear power plant worth at least $7.2 billion at current
prices will be delayed as politicians discuss whether to allow
Chinese and Russian bidders to take part due to security
concerns, officials said on Wednesday.
    The plan for majority state-owned utility CEZ  CEZP.PR  to
build a 1,200 MW unit at the Dukovany power plant has run into
demands from security services and five opposition parties to
exclude Russia's Rosatom and China General Nuclear Power due to
perceived security risks to the NATO and EU member country.
    Industry and Trade Minister Karel Havlicek said after a
meeting of a state commission on nuclear power expansion that
the tender would not be opened by the end of the year as planned
and further discussions would take place in January, CTK news
agency reported.
    He said four options were being discussed: allowing Chinese
and Russian bidders to take part; allowing them in only as
junior members of wider consortia; not allowing them in; or
delaying the process until after an election due in October
2021.
    Havlicek said he preferred an option where Russian and
Chinese firms could join forces with the other three potential
bidders - South Korea's KHNP, France's EdF and Westinghouse of
the United States.
    "This is an option where we...would secure a competitive
tender, achieve a lower price and at the same time protect the
state's security interests," Havlicek said.       
    Representatives of two opposition parties confirmed to
Reuters the options on the table, but said they preferred to
exclude Russian and Chinese firms.
    Nuclear power is a part of the country's plan to secure its
energy needs as it phases out coal, although it is preparing to
retire several older reactors.  urn:newsml:reuters.com:*:nL1N2IK0II  
    CEZ has argued for the widest-possible field of bidders to
push the price down. It said on Wednesday it was waiting for
instruction on whom to invite to the tender. urn:newsml:reuters.com:*:nP7N2FD00W 
    The tender had been expected to open this month until Prime
Minister Andrej Babis said in November that he wanted a
cross-party agreement.  urn:newsml:reuters.com:*:nL8N2IA2LN
    The project includes price guarantees for power prices for
CEZ and requires European Commission clearance for state aid.   

 (Reporting by Jan Lopatka; Editing by Kirsten Donovan)
 ((jan.lopatka@thomsonreuters.com; +420 234 721 614; Reuters
Messaging: jan.lopatka.thomsonreuters.com@reuters.net))