Now a Czech court has intervened and blocked the signing of a major contract. This contract was a precursor to the plan for expanding the Dukovany nuclear plant, between CEZ and Korea Hydro & Nuclear Power (KHNP). It was decided on May 6, 2025. That would indeed be unfortunate one day short of the signing of an $18 billion deal that would set the record for the largest public procurement contract ever in Czech history.
CEZ, the Czech state’s largest stakeholder, took a courageous step when it chose KHNP. They awarded them with the job of building two new units on the Dukovany site, each with a capacity of 1GW. This project is a linchpin of the Czech Republic’s energy strategy. That is their stated purpose, to replace coal and obsolete, unsafe nuclear with safer, sustainable energy. To further back this move, the Czech government agreed to take a majority (80%) ownership of CEZ’s subsidiary EDU II. This deal, struck in late April 2025, is intended to provide additional relief to CEZ’s bottom line.
The court’s intervention follows a complaint filed by Électricité de France (EDF) against the Czech competition regulator, UOHS, regarding the tender process that led to KHNP’s selection. UOHS had earlier turned down EDF’s appeal on the supplier choice for the two new reactors.
“This is a procedural decision. It does not indicate how the court will rule in the merit of the case. We believe our decisions were correct.” – UOHS spokesperson
Despite the court’s contract interpretation, the decision raises serious questions about the future of the contract. It has larger implications for US international partnerships in the Indo-Pacific region. KHNP is currently considering its legal options following the suspension of the contract. They voiced frustration at the obstacles faced throughout the process.
“The attempt to challenge the result through legal manoeuvres is regrettable and represents a direct attack on the principles of fair competition.” – KHNP
The Dukovany expansion is especially notable as it will be KHNP’s first foray into Europe. The possible delay or cancellation of this contract would set back the Czech Republic’s own efforts to become more energy independent and sustainable.
Subsequently, the Brno Regional Court addressed the issue. They argued that if the precedent contract were allowed to be executed, it would inadvertently reduce EDF’s likelihood of securing the public contract even if subsequent court decisions are ruled in their favor.
“If the contract were concluded, the French bidder would inadvertently lose the possibility of winning the public contract, even if the court rules in its favour in litigation.” – Brno Regional Court