TVO increases claim against Areva-Siemens in arbitration
Finnish utility Teollisuuden Voima Oyj (TVO) has revised its estimated costs and losses relating to the continued delay in completion of the first-of-a-kind EPR at Olkiluoto.Finnish utility Teollisuuden Voima Oyj (TVO) has revised its estimated costs and losses relating to the continued delay in completion of the first-of-a-kind EPR at Olkiluoto.
.jpg "Olkiluoto 3 - September 2014 - 460 (TVO)") |
| Olkiluoto 3, pictured in September (Image: TVO) |
TVO said that it has increased its estimated costs and losses to €2.3 billion ($2.9 billion) up to the end of 2018, the latest expected commissioning date for the reactor announced by the turn-key constructor, the Areva-Siemens consortium. In late 2012, it had estimated costs and losses of some €1.8 billion ($2.3 billion) up to the end of 2014.
The company said that it submitted the updated estimate to the International Chamber of Commerce (ICC), an international arbitration court, on 20 October.
In 2012, TVO submitted a claim and defence in the ICC arbitration proceedings concerning the delay and the ensuing costs incurred at the Olkiluoto 3 project. TVO has also rejected a claim presented to it by Areva-Siemens that it had itself caused some delays in the plant's construction. In a countermove, Areva-Siemens sought damages of €1.9 billion ($2.6 billion) from TVO in relation to the delay and cost overruns of the project.
Arbitration began in December 2008.
In October 2013, Areva-Siemens increased its claim against TVO to €2.7 billion ($3.4 billion) for damages up to the end of June 2011. TVO said that it found this claim "to be without merit."
TVO noted that proceedings with the international arbitration court "may continue for several years and the amounts claimed may be updated."
Since construction began in 2005, the Olkiluoto 3 project has suffered various delays which have seen its projected startup date put back several times from the original 2009 target. The Areva-Siemens consortium informed TVO in early September that its latest schedule foresees the completion of construction and start of commissioning of Olkiluoto in mid-2016, with operations following in 2018.
Researched and written
by World Nuclear News
