Agreement signed to continue work on Polish project

In November 2022, the then Polish government selected Westinghouse AP1000 reactor technology for construction at the Lubiatowo-Kopalino site in the Choczewo municipality in Pomerania in northern Poland. In September 2023, Westinghouse, Bechtel and Polskie Elektrownie Jądrowe (PEJ) - a special-purpose vehicle 100% owned by Poland's State Treasury - signed an 18-month Engineering Services Contract (ESC) under which Westinghouse and Bechtel will finalise a site-specific design for a plant featuring three AP1000 reactors. The aim is for Poland's first AP1000 reactor to enter commercial operation in 2033.

The ESC contract expired at the end of March without a new agreement being concluded. However, earlier this month, PEJ announced that an Engineering Development Agreement (EDA) - a so-called 'bridge agreement' - had been agreed, establishing the framework for cooperation between PEJ and the Westinghouse-Bechtel Consortium for the next nine months.

PEJ said the conclusion of the EDA agreement allows for the continuation of engineering work within the framework of the nuclear power plant project in Pomerania and ensures the transition to the next phases of project implementation, including negotiations on the construction contract.

It noted that the EDA agreement will introduce, among others, a partial change to the remuneration model, improvement of the investor's supervision over the implementation of the contract and the acceptance procedures for completed products, which results, among others, from the experience of implementing the ESC agreement. The scope of the EDA agreement provides for further development of preparatory, geotechnical and engineering works, allowing for more advanced works on the technical design of the power plant, continued cooperation in obtaining permits and approvals and development of the supply chain.  

"We have reached an agreement based on solid foundations, a well-thought-out structure and a clear division of responsibilities," said Piotr Piela, acting president of PEJ. "The agreement signed today is a platform for further cooperation and an example of a compromise that is beneficial to both parties. It ensures the highest technological and safety standards, while at the same time guaranteeing rational costs and responsible risk and schedule management. I am convinced that together with our American partners we are consistently approaching the conclusion of a final agreement for the construction of this power plant."

Bechtel President and Chief Operating Officer Craig Albert added: "As the project enters the next phase - including advanced geological surveys and site engineering - Bechtel is deeply committed to working with PEJ, Westinghouse, local businesses and residents."

"With the signing of the EDA, we can continue our close collaboration with PEJ to leverage the proven, advanced AP1000 reactor technology in this groundbreaking project," said Westinghouse Energy Systems President Dan Lipman. "This project will not only provide Poland with a reliable, affordable, baseload source of clean energy for many years to come, but will also generate billions of zlotys in investment, positively impacting Poland's gross domestic product and creating thousands of jobs during the project and for decades to come during the plant's operational life."