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Finnish energy firm TVO and plant supplier update their claim amounts in ICC arbitration concerning delay to OL3 project

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Finnish energy firm TVO and plant supplier update their claim amounts in ICC arbitration concerning delay to OL3 project

August 06, 2015 - 03:14
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HELSINKI, Aug. 3, 2015 (Press Release) -

TVO and the plant supplier update their claimed amounts in the ICC arbitration concerning the delay to the OL3 project

​Both Teollisuuden Voima Oyj (TVO) and the plant supplier building the Olkiluoto 3 nuclear power plant unit, the AREVA-Siemens consortium, updated at the end of July 2015 their claimed amounts in the course of the ongoing International Chamber of Commerce (ICC) arbitration proceedings concerning the delay to the OL3 project.

TVO´s updated quantification estimate of its costs and losses is approximately EUR 2.6 billion until December 2018, which is the expected start of regular electricity production by OL3 according to the schedule submitted by the plant supplier in September 2014.

The plant supplier´s updated monetary claim is in total approximately EUR 3.4 billion. The claim covers events that occurred during the construction period until the end of June 2011. The sum claimed includes penalty interest (calculated until 31 July 2015) and payments allegedly delayed by TVO under the plant contract together amounting to approximately EUR 1.4 billion, as well as approximately EUR 140 million in alleged loss of profit.

- Despite the arbitration, the project makes progress and TVO continues to support the supplier to complete the project, explains Risto Siilos, SVP in charge of legal affairs at TVO.

The arbitration proceedings concerning the delay to the OL3 project were initiated in December 2008 by the plant supplier. TVO has considered the supplier's claims to be without merit and has not recorded any receivables or provisions based on the claims presented to date. TVO will scrutinize the new material which has been submitted, and respond to it in due course. The arbitration proceedings may continue for several years, and the claimed amounts may be updated.

TVO procured the OL3 nuclear power plant unit from the AREVA-Siemens consortium on a fixed-price turnkey contract. The supplier consortium companies (AREVA GmbH, AREVA NP SAS and Siemens AG) are jointly and severally liable for their obligations under the contract.