The state -owned company Czech Republic EDU II and South Korea officially signed contracts for the construction of two new nuclear energy reactors, which is an agreement worth $ 18 billion, Reuters said.
This significant development comes after the court has canceled the court order that temporarily stopped the conclusion of the agreement.
The best court will clear the way for an agreement
According to Reuters on Wednesday, the Supreme Administrative Court annulled the court order of the lower court, which prevented the signature of what is now the largest agreement on public procurement in Czech history. The decision explains the way for the project to continue, which is essential for the energy transition of the Czech Republic, as it focuses on the replacement of aging coal and nuclear units.
The command was attacked last month and won the French EDF, a competing candidate. This legal challenge derailed the initial signature of the contract, which was planned for May 7, with a ceremony and Korean delegation already on their way to Prague.
However, EDU II and KHNP appealed to the lower court’s decision, after which the Supreme Administrative Court stated that it follows these complaints and found that the trial had issued the lower court as unlawful and unintelligible.
What do companies say
According to Reuters, KHNP said in a statement that Wednesday’s decision “clarifies the way for the early development of this strategically important project”. The court order represented the main obstacle that threatened the project timeline in the middle of the possibly lengthy court bits and the impending expiration of the KHNP offer.
What is the project about?
Last year, the parent company EDU II chose CEZ KHNP to build two 1,000 megawatt units to expand its Dukov nuclear race, which KHNP provided the first project in Europe. EDF tried to overturn this decision on several occasions.
The government will provide loans and price system to make the project profitable, with an 80 % stake in EDU II operates the project in April, while the CEZ maintains 20 percent, Reuters said.
What will be in a legal battle?
The lower court, which originally issued a court order, is intended to plan the arrangement of hearing on the complaint of EDF against the selection procedure of June 25, in addition, EDF also asked the European Commission and claimed that the victory of KHNP is directly linked to state support because the company offered a low price. KHNP consistently denied these accusations.
The Czech Republic must also ensure the approval of the new European Union (EU) for state loans and electricity price mechanism, because the project has been extended from one to two reactors after the EU initial permission.
(Tagstotranslate) Czech Republic
