This undated file photo provided by Korea Electric Power Corp. shows the Barakah nuclear power plant in the United Arab Emirates. (Yonhap)
SEOUL, May 7 (Korea Bizwire) — The state-run Korea Hydro & Nuclear Power Co. (KHNP) submitted a request for arbitration with an international mediation court Wednesday regarding a conflict with parent company Korea Electric Power Corp. (KEPCO) over a payment dispute involving additional construction costs for a nuclear power plant in the United Arab Emirates (UAE), company officials said.
KHNP asked the London Court of International Arbitration to mediate the conflict over some US$1 billion in extra costs incurred during the construction of the Barakah Nuclear Power Plant in the Middle Eastern country, according to the officials.
South Korea won the 20 trillion-won (US$14.3 billion) contract to build the plant in 2009, marking the country’s first-ever overseas nuclear power plant project.
Following the project’s completion last year, KEPCO, the main contractor, and KHNP, which was in charge of operational support services, have been undergoing a final settlement process.
KHNP has submitted a formal claim demanding reimbursement for the additional costs, citing delays and extra work orders caused by the UAE and KEPCO.
“We regret that we were unable to reach an agreement with KEPCO on this matter,” a KHNP official said, adding that the company remains open to further negotiations even as arbitration proceedings move forward.
KHNP argues that, despite being a wholly owned subsidiary of KEPCO, it provided services under an independent contract and therefore is entitled to a separate settlement. KEPCO, however, said internal settlements should come after recovering additional costs from the UAE.
(Yonhap)
