KHNP Ends Talks With Daewoo E&C, Doosan to Build 2 Dukovany Reactors

Korea Hydro & Nuclear Power (KHNP) said on Oct. 29, 2026 that it has ended construction contract talks with a consortium of Daewoo Engineering & Construction and Doosan Enerbility for the Dukovany nuclear project in the Czech Republic, according to Aju Press and Seoul Economic Daily.

KHNP cited differences over key contract terms. It said working-level talks, a dispute coordination committee and management-level negotiations all failed to produce a final deal. It has begun ending its joint cooperation agreement with the consortium and is preparing a tender for a new builder. Until one is chosen, KHNP said it will handle essential work itself to avoid gaps.

The project is two 1,000-megawatt APR1000 reactors, a Korean design, at the Dukovany site. Seoul Economic Daily put its value at roughly 26 trillion won ($18 billion). KHNP signed the main contract with the Czech client Elektrarna Dukovany II (EDU II), a unit of majority state-owned utility CEZ, on June 4, 2025, according to Aju Press. It was South Korea's first nuclear plant export since the 2009 Barakah contract in the United Arab Emirates.

Dispute Over Fixed-Price Risk

According to the Korea JoongAng Daily, KHNP said the gap in the builder's demands was well over 1 trillion won. It said a lump-sum, fixed-price arrangement was the Czech government's top requirement and is standard practice, and that it used the same terms on its domestic reactors and at Barakah.

The consortium disputes that account. BusinessKorea reported that it filed a revised proposal by the Oct. 29 negotiating deadline and rejected KHNP's declaration that talks had collapsed. It says KHNP changed the subcontract conditions on Oct. 7 and asked for a position within three weeks. It also argues the APR1000 is being built commercially for the first time anywhere, so a builder with no design role should not absorb higher quantities without a cost adjustment. KHNP refused a request to extend talks to Dec. 31, the consortium said.

Why It Matters for Power Supply

The Czech Republic's two new 1,000-MW units are meant to add firm nuclear supply by the mid-2030s, and a new builder search puts pressure on that timetable. KHNP said it will work with the Korean government, the Czech client and its partners to keep the original plan. Aju Press reported the first unit is due for completion in 2036. The Korea JoongAng Daily reported a schedule of a construction permit in 2029 and commissioning in late 2036, and KHNP's aim of choosing a new contractor before July 2027. That tender will be open only to Korean construction companies, and KHNP said it would accept bids from Daewoo and Doosan.

Other contracts are unaffected so far, according to the reports. KEPCO E&C holds the design contract, and Doosan Enerbility holds the reactor and turbine-generator supply contracts, which the Korea JoongAng Daily said are proceeding as planned. Fuel and maintenance contracts with KEPCO affiliates are targeted for 2027. Voltgrid News reported earlier on KHNP's plan to restart Kori 3 and 4, and on Doosan Enerbility's first SMR vessel order.

What Is Not Confirmed Yet

No replacement builder has been named, and the cost of the change to the Czech contract has not been disclosed. The consortium said it is considering other response measures and urged KHNP to resume talks, so the split is not final from its side. Markets reacted quickly: the Korea JoongAng Daily reported Daewoo E&C shares fell 18.57% to 11,620 won and Doosan Enerbility shares fell 7.65% to 56,700 won. Outlets give different project values, from about $18 billion to $19.3 billion, so the figure should be read as approximate.