The Czech government and the energy company CEZ on Tuesday signed a contract for the construction of a new unit at the Dukovany Nuclear Power Station, according to the Ministry of Industry and Trade.
In the contract, the investor undertakes to take specific steps in the preparation and construction of a new nuclear power plant according to a set time schedule. At the same time, given the potential market failures and inherent political risks, it receives adequate and justified guarantees from the state.
"Contracts give security to us and our shareholders. We can continue the project and announce a tender for the main supplier at the end of the year," said CEZ Chief Executive Officer (CEO) Daniel Benes.
Under the plan, by the end of 2024, the investor will have to select the main supplier of the new nuclear power plant in Dukovany and negotiate a contract. The construction of the new unit should begin in 2029 and the new power plant unit is planned to be put into operation in 2036.
The government had been in talks with CEZ about expanding its nuclear power operation and replacing older units for some time, but high costs had been a matter of concern for officials.
However, in late May, CEZ was able to secure an estimated six-billion-U.S.-dollar loan from the Czech government for the Dukovany expansion project.
The government will thus help finance the new unit interest-free during construction, after which a two percent interest will be charged during operation. The total cost of the operation is estimated at 160 billion Czech crowns (7.18 billion U.S. dollars), according to local media.
Editor:Cherie
