09.02.2016_No15 / News

Areva-Siemens Updates Olkiluoto-3 Claim To €3.52 Billion

Plans & Construction

9 Feb (NucNet): The Areva-Siemens consortium building the Olkiluoto-3 nuclear power plant in Finland has updated its claim at an International Chamber of Commerce (ICC) arbitration proceeding to “approximately €3.52bn ($3.96bn) in total” from €3.5bn in 2014, a statement by nuclear operator Teollisuuden Voima Oyj (TVO) said.

Construction continues at the Olkiluoto-3 nuclear station in Finland.

TVO, for whom Areva-Siemens is building the EPR unit, said the sum is for delays to the Olkiluoto-3 project and is based on the supplier’s updated analysis of “events that occurred through September 2014, with certain claims quantified to 31 December 2014”.

The sum includes penalty interest calculated to 30 June 2016 and payments “allegedly delayed” by TVO under the plant contract amounting to approximately €1.45bn, as well as approximately €135m in alleged loss of profit.

The proceedings were initiated by Areva-Siemens in December 2008. TVO said it has considered and found the earlier claims by the consortium to be “without merit” and will scrutinise the updated claim.

In August 2015 TVO said its own updated estimate of its costs and losses had increased to approximately €2.6bn until December 2018, which is the expected start of commercial operation at Olkiluoto-3 according to a schedule submitted by Areva-Siemens in September 2014. The start date is around nine years later than originally planned.

Earlier, in October 2014, TVO said it was submitting a claim of €2.3bn based on estimated costs and losses up to the end of 2018. Areva-Siemens said it was claiming approximately €3.5bn for “additional work, disruption and prolongation of the project”.

The arbitration proceedings may continue for several years and the amounts being claimed may be revised, TVO said.

TVO procured the Olkiluoto-3 EPR from Areva-Siemens on a fixed-price turnkey contract. TVO said the supplier consortium companies – Areva GmbH, Areva NP SAS and Siemens AG – are liable for their obligations under the contract.

TVO said that despite the arbitration, the project has reached its final phases. Testing of the various systems is continuing and TVO said it is supporting Areva-Siemens to complete the remaining tasks.

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