Industry Minister Ahn Duk-geun (right) addresses the media during a press briefing in Sejong on Thursday, where Korea Hydro & Nuclear Power President Whang Joo-ho (left) joined him to discuss the Czech Republic's selection of KHNP as the preferred bidder for a $17.3 billion nuclear power project. (Yonhap)

South Korea is close to securing a landmark contract to build nuclear power plants in the Czech Republic in a deal valued at approximately $17.3 billion, with finalization expected by March 2025.

On Thursday, Minister of Trade, Industry, and Energy Ahn Duk-geun held a press briefing to confirm the Czech government’s selection of Korea Hydro & Nuclear Power as the preferred bidder.

"The Czech government announced last night that it has chosen KHNP as the preferred bidder for the new nuclear power plant construction project,” he said.

“This achievement will also serve as a gateway for us to enter the European nuclear market. We are eager to collaborate closely to finalize the contract, aiming for a successful and mutually beneficial agreement.”

This deal will see the construction of two nuclear power plant units in Dukovany, with the potential for two additional units in Temelin, pending future decisions by the Czech government. The estimated cost for building each unit is approximately 200 billion koruny ($8.65 billion), with the generated electricity expected to cost less than 90 euros ($98) per megawatt-hour. Each unit will have a capacity of 1,000 megawatts.

The Korean consortium led by KHNP, comprising Kepco E&C for design, Doosan Enerbility and Daewoo E&C for construction, Kepco Nuclear Fuel for fuel supply and Kepco Plant Service & Engineering for commissioning and maintenance, will handle all aspects of the project.

Once the contract is finalized, the project will begin licensing with construction to start in 2029. The first unit is expected to be completed by 2036, with the second unit following shortly after. The timeline for the additional units in Temelin could be shortened based on increasing electricity demand.

“Negotiations for the two additional units will occur over the next five years. We anticipate the costs will be similar to the first phase,” said Whang Joo-ho, president of KHNP.

The successful bid is attributed to the robust collaboration between Korea’s public and private sectors. This victory comes 15 years after Korea sealed its first significant nuclear export project to the United Arab Emirates in 2009.

Minister Ahn applauded the coordinated effort, saying, “Overseas nuclear power projects are a national endeavor. Over the past two years, KHNP, its partners, academia, research institutes, government departments and support organizations have all worked together tirelessly.”

He insisted that Korea’s bid surpassed France’s Electricite de France with its “On Time, Within Budget” strategy.

The Korean team showcased superior performance in price, quality and delivery time. Additionally, Korea’s efforts to engage with the local community in Dukovany, including sponsoring an ice hockey team, providing quarantine supplies and organizing volunteer activities, were well-received. The Dukovany Regional Council’s endorsement further bolstered their bid.

"The Korean offer was better practically in all assessed criteria," Czech Prime Minister Petr Fiala said in a news conference on Wednesday.

Ahn reflected on the competitive process, noting a pivotal moment. “In April, Westinghouse from the US was disqualified from bidding, making it a direct competition with France. From that point, the so-called ‘war room’ in the president’s office was fully activated. When the Czechs decided to bid for four units instead of one, the stakes were raised significantly.”

Ahn dismissed suggestions from critics that the project might not be profitable under the tender’s terms and conditions, stating, "Korea is globally competitive due to our advanced technology and robust project management skills. Claims that we are undercutting prices are unfounded."

Following the contract, South Korea aims to expand its nuclear exports across Europe. KHNP plans to use this achievement as a launchpad to enter markets in the Netherlands, Finland and Sweden, with a goal of exporting 10 nuclear power plants by 2030.

KHNP President Whang expressed optimism on the future prospects of winning other projects in Europe.

“We are currently conducting a feasibility study in the Netherlands and expect to bid soon,” he said. "Discussions with Finland and Sweden are also ongoing."