Bidders for Temelín expansion sign contracts with Czech firms

Prague, Feb 27 (CTK) - US-Japanese company Westinghouse, which is vying for the order for the extension of the Temelin nuclear power station, yesterday signed memoranda of understanding with the firms Nuclear Research Institute (UJV) Rez, Skoda Praha Invest and Kralovopolska Ria.

If Westinghouse wins the tender, the companies will gain orders for engineering work related to the power station.

Czech-Russian Consortium MIR.1200, another participant in the tender, announced yesterday it was going to sign contracts with several Czech companies that will take part in the extension of Temelin if the consortium wins the tender.

The contracts will be more specific than the memoranda and letters of intent the consortium signed with Czech companies in the past.

"The contracts define the obligations of all parties and the extent of work these companies would perform," Josef Perlik of Skoda JS, the consortium's Czech member, said.

"At the beginning of March, contracts with companies ZAT, Hochtief and UJV Rez will be signed," Perlik said.

The consortium has already signed similar contracts with companies PSG Zlin and I&C Energo.

By the end of March, the consortium also plans to sign contracts with companies ZVVZ Milevsko, Sigma Lutin, Vitkovice, Kralovopolska RIA and OSC.

The consortium will not, however, sign a contract with pipe producer Modrany Power, though they held talks on cooperation in the past. Komercni banka has filed insolvency petition against Modrany Power over a debt of about Kc150m.

"We want our supplier chain to include companies that are stable," Perlik said.

The contracts to be signed will contain a clause which will make it possible for the consortium to influence the selection of subcontracting parties. The consortium thus wants to ensure it will fulfil its commitment it made in its bid to power utility CEZ that 70 percent of the Temelin extension project would be carried out by Czech firms.

The consortium's rival in the tender, US-Japanese company Westinghouse, has also promised high participation of Czech companies in the construction. It has already signed memoranda on cooperation with a number of companies, including engineering group Vitkovice.

yesterday, Westinghouse announced signing of memoranda on cooperation with another three companies.

The three memoranda cover most of the designing work necessary for meeting Czech norms and legislation. If the AP1000 project wins, hundreds of Czech engineers will gain work for several hundreds of millions of crowns, Westinghouse said in its press release.

Teaming up with important Czech designing companies not only confirms Westinghouse's pledge to use local people and resources but also the fact that Westinghouse will submit the best possible bid to CEZ, said Westinghouse vice-president Sandy Rupprecht.

The third bidder, French company Areva, was excluded from the tender in October. CEZ's decision has been confirmed by the antitrust office UOHS this week.

Areva has, however, appealed the decision and still seeks a return to the tender.

The construction of the third and fourth units of Temelin is estimated to cost between Kc200bn and Kc300bn. It should more than double the output of Temelin.

CEZ wants to announced the winner of the tender in September this year.

The new units should be put into operation in 2025.