TVO seeks EUR 1.4 billion in damages for Olkiluoto nuclear reactor delays
The Finnish nuclear power company Teollisuuden Voima (TVO) is seeking damages of EUR 1,400 million from the consortium of Areva and Siemens for delays in the construction of Finland's fifth nuclear reactor in Olkiluoto.
The matter was noted in an appendix to the Siemens interim figures published on Tuesday.
Areva and Siemens reported some time ago that the nuclear reactor project would be completed 38 months behind schedule, in 2012.
According to the contract signed with TVO, the reactor was to have been ready for commissioning in 2009.
TVO signed an agreement for the third Olkiluoto plant in December 2003. The price of the reactor was in excess of EUR 3 billion, making it among Finland's largest-ever individual industrial investments.
According to the Siemens statement: "Since the reasons for the delay are disputed by the parties, the supplier consortium filed a request for arbitration in December 2008 against TVO demanding an extension of time for construction and approximately EUR 1 billion for outstanding payments and additional compensation."
"TVO has not yet filed its response to the request for arbitration, but has alleged in pre-arbitral correspondence that it is entitled to delay damages from the supplier consortium of approximately EUR 1.4 billion."
The contract for the 1600 MW European Pressurized water Reactor (EPR) at Olkiluoto, the first of a new breed of nuclear plants, was made at a fixed price.
Areva and Siemens are building the facility as a turnkey project for TVO.
The Siemens share of the venture is 27%, and hence the company's liability for the claim by TVO would be in the region of EUR 700 million, while Areva would be liable to pay EUR 1.7 billion.
Previously in HS International Edition:
Olkiluoto III start-up delayed again - reactor could go on stream only in 2012 (17.10.2008)
Nuclear authority angered by shortcomings in reactor construction (3.11.2008)
Siemens to give up nuclear joint venture with Areva (27.1.2009)
Olkiluoto III (TVO)