Czechs press nuclear tender button

By bne IntelliNews November 1, 2011

bne -

The Czech Republic's giant nuclear tender took an important step forward October 31 when the country's utility CEZ invited the qualified candidates - France's Areva, the Toshiba subsidiary Westinghouse Electric and a Russo-Czech consortium led by Atomstroyexport - to submit bids by July 2, 2012, with the winning bidder expected to be announced in late 2013.

In a statement, CEZ said it has provided the bidders with the official documents outlining the parameters of the tender to build two new nuclear units at its 2-gigawatt Temelin nuclear power plant.

CEZ has earlier said the tender, which was first announced in 2009, includes an option for it to order another three more reactors at sites inside and outside the Czech Republic under the same terms and conditions that apply to the one at Temelin, which analysts say could mean the total investment reaches over €20bn.

The tender documentation includes the relevant evaluation criteria and the overall bid assessment procedure. "Criteria to evaluate the bids is... 50% centred on technical specifications including safety and licensing, and the remaining 50% include the economics of the offers, namely the price, commercial terms such as guarantees, payment terms or conditions in the supply of nuclear fuel," CEZ said.

With the global economy and nuclear industry in uncertain times, the importance of this tender to the three bidders has been evident by the PR battle being conducted through the press in the lead-up to the announcement.

The previous week, the head of Russian state nuclear holding Rosatom, Sergei Kirienko, was in town for several days, during which he met with journalists and spoke at the Atomex Europe 2011 international forum. Kirienko was keen to stress how the bid of Atomstroyexport and Gidropress, which are both controlled by Rosatom, and its Czech partner JS Skoda (which is actually owned by Russian engineering firm OMZ) will help over 300 Czech suppliers with billions of crowns in orders.

This is the line the French and the Americans are also keen to stress.

"We are ready to commit to local suppliers - we have identified more than 150 that we can work with, and we are already working with many of them and want to work with them even stronger on this project," said Ruben Lazo, Areva's chief commercial officer, who added that Areva is the only company with a third-generation nuclear reactor design which is already licensed in Europe with two currently under construction in Finland and France.

Westinghouse described a win by the US firm as, "A huge opportunity for Czech companies to participate in manufacture and construction of the plant - based on our 'We Buy Where We Build' philosophy - which could see up to 70% of the project delivered by local Czech firms."

Related Articles

UK demands for EU reform provoke fury in Visegrad

bne IntelliNews - The Visegrad states raised a chorus of objection on November 10 as the UK prime minister demanded his country's welfare system be allowed to discriminate between EU citizens. The ... more

Czech food producer Hame seen next on the menu for Chinese giant

bne IntelliNews - Following a smorgasbord of acquisitions in late summer, China Energy Company Limited (CEFC) is eyeing yet another small Czech purchase, with food ... more

INTERVIEW: Babis slams coalition partners, but Czech govt seems safe for now

Benjamin Cunningham in Prague - Even as the Czech governing coalition remains in place and broadly popular, tensions between Prime Minister Bohuslav Sobotka and Finance Minister Andrej Babis remain ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss