Seoul: South Korea’s two public energy firms, Korea Electric Power Corp. (KEPCO) and Korea Hydro and Nuclear Power Co. (KHNP), are projected to spend nearly 37 billion won (US$26.1 million) on lawsuits against each other concerning a payment dispute related to a significant nuclear power plant project in the United Arab Emirates.
According to Yonhap News Agency, the reports submitted to Rep. Kim Dong-ah of the ruling Democratic Party reveal that KEPCO and KHNP will allocate 14 billion won and 22.8 billion won, respectively, for legal fees associated with their disagreement over the Barakah nuclear plant. South Korea secured the 20 trillion-won contract for constructing the plant in 2009, marking the nation’s inaugural overseas nuclear power initiative.
The dispute arose following the project’s completion last year, as KEPCO, the primary contractor, and KHNP, responsible for operational support services, entered the final settlement process. In May, KHNP sought the intervention of the London Court of International Arbitration to mediate the disagreement, demanding approximately $1 billion in additional costs due to delays and extra work orders attributed to the UAE and KEPCO.
Rep. Kim emphasized the importance of reviewing the previous administration’s efforts in resolving the dispute between KEPCO and KHNP and holding accountable those responsible for the ongoing issue.