Japan signed a contract in May 1999 committing to provide its $1 billion contribution to KEDO to fund the new light-water reactors, an action which had been delayed by North Koreas missile test in August 1998. The project was expected to cost a total of $4.6 billion, with South Korea providing the greatest share of funding at $3.2 billion. The United States and the European Union also had pledged to contribute funds.
Construction of the light water reactors was to be performed under a turnkey contract with KEPCO, which was awarded in December 1999. Initial site preparation work had begun, and the concrete foundation at the site was laid in August 2002. Training of North Korean technicians who were to operate the reactors had begun in June 2002. The project had faced many delays, and the completion date for the first reactor has been pushed back to at least 2008, from an original completion date of 2003. One hurdle the project had faced was the issue of indemnity for potential liabilities created by the plant. General Electric had originally been chosen to supply the generators, but pulled out of the project when the issue was not resolved to its satisfaction. In January 2001, it was announced that a consortium of Japanese firms, led by Hitachi and Toshiba, would supply the generators.