Seoul: The state-run Korea Hydro and Nuclear Power Co. (KHNP) has filed a request for arbitration with an international mediation court regarding a dispute with its parent company, Korea Electric Power Corp. (KEPCO), over additional construction costs incurred for a nuclear power plant in the United Arab Emirates (UAE), as reported by company officials.

According to Yonhap News Agency, KHNP has approached the London Court of International Arbitration to mediate the conflict concerning approximately US$1 billion in extra costs linked to the construction of the Barakah Nuclear Power Plant. This project marked South Korea’s first overseas nuclear power plant venture after securing a 20 trillion-won (US$14.3 billion) contract in 2009.

Following the plant’s completion last year, KEPCO, the primary contractor, and KHNP, responsible for operational support services, have been engaged in a final settlement process. KHNP has formally demanded reimbursement for the additional costs, attributing the expenses to delays and extra work orders caused by both the UAE and KEPCO.

“We regret that we were unable to reach an agreement with KEPCO on this matter,” a KHNP official stated, emphasizing that the company remains open to further negotiations despite the ongoing arbitration proceedings.

KHNP insists that, although it is a wholly owned subsidiary of KEPCO, it operated under an independent contract and is thus entitled to a separate settlement. In contrast, KEPCO maintains that internal settlements should be finalized only after recovering additional costs from the UAE.