mardi 4 août 2015

EPR: the Finnish operator claims now €2,6 billion to the French consortium

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TVO and Areva-Siemens

Olkiluoto EPR

"Les Échos" on August, 3rd.

Reactor commissioning is scheduled for late 2018 - AFP PHOTO/AIRA VEHASKARI

First, the operator claimed  a €2,3 billion compensation. On its part, the manufacturing consortium has kept its own request for damage at €3,4 billion.

TVO and Areva-Siemens carry on blaming each other for dysfunctions. The Finnish utility, which is the future operator of an EPR reactor build by the consortium, stated that the company decided to increase its claim for compensation from €2,3 billion to €2,6 billion to Areva-Siemens, because of the delays in implementing the construction.
The Arbitration Court of the International Chamber of Commerce (ICC) is currently examining this case, in which each party blames the other one. 
Among TVO's shareholders, there are Finnish paper manufacturers UPM and Stora Enso, and the Fortum Group, specialized in services to communities. 
TVO also stated that the consortium has kept its own claim at €3,4 billion.

Waiting for a year-long decision

"The case focuses on events, which took place during the construction period until late 2011 (...). The claimed amount includes defaults interest (...) and late payments charged to TVO, amounting to some €1,4 billion, together with some €140 millions due to an alleged profit loss", wrote TVO in a statement.  
Whereas reactor manufacturers blame TVO for administrative impediments that make their work slower and more difficult.
Risto Siilos, TVO's Deputy General Director, repeated that the ICC may issue its arbitration only after several years. In April, some sources close to the French nuclear group told Reuters that a part decision could be made in the end of the year.

"Despite the arbitration process, the project carries on"

According to the latest information, the reactor commissioning has been scheduled for December 2018, which means a ten-year delay, as the reactor should have been commissioned in 2009. Considering this delay, TVO has recently given up the construction of a fourth reactor on its site.
'Despite the arbitration process, the project carries on", highlighted Risto Siilos.
Thursday, Areva officially transferred the main part of its reactors division to EDF, which has made sure to take no part at all in the financial risks relating to the Finnish project. "We would warmly welcome any initiative of the French nuclear industry in order to help Areva to carry out the Olkiluoto project", said Risto Siilos, referring to this transfer to EDF.

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