Czech Contract Halt: New Nuclear Power Deal Faces Legal Hurdles

The Czech anti-monopoly office has placed a temporary ban on finalizing a contract with South Korea's KHNP for a new nuclear power unit. This follows objections from Westinghouse and EDF regarding the country's selection of KHNP. CEZ remains optimistic despite potential legal hurdles that may affect the timeline.

The Czech anti-monopoly office has temporarily halted the completion of a contract with South Korea's KHNP for the construction of a new nuclear power unit. This decision follows appeals by U.S. company Westinghouse and France's EDF against the July selection of KHNP.

The Czech office emphasized that the preliminary block is not indicative of a final decision, but a standard measure in such disputes. The focus remains on negotiations with KHNP, aiming to finalize contracts by next March, according to the Czech government and CEZ.

Despite the legal challenges, CEZ asserts that the tender process adhered to all applicable laws. As the largest energy procurement deal in Czech history, valued at up to $18 billion, the outcome carries significant implications for the country's energy strategy, which aims to transition away from coal.

(With inputs from agencies.)