The Czech government announced that a contract will be signed with the Korean consortium led by Korea Hydro & Nuclear Power on May 7, as it decided to acquire an 80 percent stake in Elektrarna Dukovany II, a subsidiary of state-owned power company CEZ, to facilitate the deal.
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The government also approved, as the most advantageous option for financing the new nuclear power unit project, a state loan (so-called repayable financial assistance) to the investor (the company EDU II), which will implement the construction.
The loan will be provided after obtaining the European Commission's approval of the financing method and investor model of the project, which we expect to happen around 2026.
Until then, the company Elektrárna Dukovany II will be financed by a bridging commercial loan.
"Since the beginning of our government, we have been working to ensure the energy security and self-sufficiency of the Czech Republic for future generations," said Prime Minister Petr Fiala.
"Nuclear energy, especially the construction of new nuclear sources, is strategically important for the future of the Czech Republic. The state's takeover of an 80% stake in EDU II will enable the implementation and financing of this project."
CEZ Group will retain a 20% stake in EDU II, which will ensure its expert involvement in the project.
The shareholders' agreement in relation to EDU II will be concluded by the Ministry of Finance and ÄŒEZ. The value of the 80% share of EDU II is CZK 3.6 billion.
After obtaining a permit to operate a new nuclear source from the State Office for Nuclear Safety under the Atomic Act, EDU II will repay the state's repayable financial assistance for a period of 30 years.
As the Czech project will give the Korean nuclear sector a presence in Europe for the first time, the Korean government has inched closer to its goal of exporting 10 nuclear reactors by 2030.
Korea’s first overseas nuclear reactor project was with the United Arab Emirates in 2009. ■