Czech cabinet to choose firm for nuclear plant expansion by 2013

Oct 19, 2010, 14:08 GMT

Prague - The Czech government moved Tuesday to choose the company that will undertake expansion of the country's Temelin nuclear power plant, taking decision-making out of the hands of state-controlled power giant CEZ.

'This is a crucial strategic question of this state and an organ of a private firm, while controlled by state, cannot be responsible for this strategic matter,' Prime Minister Petr Necas told reporters.

'Only the government of the Czech Republic can be responsible for this strategic matter,' Necas said.

CEZ has so far been in charge of a tender to expand the Temelin plant by two new units, which has attracted three contenders for the project estimated worth 500 billion koruna (28.5 billion dollars): Russia's Atomstroyexport, France's Areva and the US' Westinghouse.

The tender carries security, economic and foreign policy risks and so must be in the cabinet's hands, Necas said.

'You have a mammoth interest of three world powers, and you will have to say no to two of them,' Vaclav Bartuska, the Czech Republic's nuclear energy envoy, said after a news briefing.

'This is the biggest decision of this government. It represents a choice of civilizational direction,' Bartuska added, appearing to mean a choice between East and West. 'You will choose someone with whom you will connect your fate for many years.'

The recent Czech cabinets have declared interest in decreasing the country's energy dependency on Russia.

Under the government's schedule, the premier said, the contenders would receive tender documentation in 2011 and submit their bids in 2012.

Necas' three-party centre-right cabinet plans to select the winner in 2013, reserving for itself the right not to pick anyone, he added.

According to earlier statements by CEZ officials, the company was to announce the winner at least one year earlier.

Temelin has been highly controversial since being launched in 2000. Fears in nearby Austria that the glitch-prone power plant would be unsafe have in the past repeatedly strained the Czech Republic's relations with its southern neighbour.

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