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TVO Receives Third ‘Final And Binding Partial Award’ For Olkiluoto-3 EPR Claim

By David Dalton
15 November 2017

TVO Receives Third ‘Final And Binding Partial Award’ For Olkiluoto-3 EPR Claim
The Olkiluoto-3 EPR is nearing completion in Finland. Photo courtesy TVO.

15 Nov (NucNet): Nuclear operator Teollisuuden Voima Oyj (TVO) has received a final and binding partial award in its International Chamber of Commerce arbitration proceeding related to delays and costs at the Olkiluoto-3 EPR nuclear power project in Finland. TVO said on 15 November 2017 that in the partial award, an ICC tribunal has addressed the execution of construction work and overall management of the project by supplier Areva-Siemens. TVO said the partial award resolves many of the issues concerning construction work in favour of TVO and defers many others issues, including the supplier’s project management, for determination in a subsequent award. This is the third final and binding partial award issued by the ICC. TVO said the arbitration proceeding is continuing towards the final award, in which the tribunal will decide on possible compensation.The Olkiluoto-3 EPR was procured from Areva-Siemens as a fixed-price turnkey project. According to the current Areva-Siemens schedule, regular electricity production from the unit will begin in May 2019, about 10 years behind schedule. In October 2014, the Areva-Siemens consortium building the unit lodged an arbitration claim against TVO for €3.5bn ($4bn) for cost overruns on the project. TVO’s counterclaim for delays is for €2.3bn. TVO said it considers its claims to be “well-founded”. The three partial awards granted by the tribunal confirm this position, the company said.

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