Electricity

Albania won arbitration against Hydro S.R.L. over Kalivac HPP

Albania won arbitration against Hydro S.R.L. over Kalivac HPP

Photo: Pixabay

Published

January 30, 2018

Country

Comments

0

Share

Published:

January 30, 2018

Country:

Comments:

0

Share

The Republic of Albania won arbitration over hydropower plant (HPP) Kalivac against Italy’s Hydro S.R.L, Albanian infrastructure and energy ministry announced.

The International Court of Arbitration ruled in favor of Albania in a breach of contract in the Kalivac construction case and the Albanian government will receive EUR 172 million in damages.

In October 2014, Albania was sued by Hydro S.R.L. for not respecting the concession agreement concluded between the two sides for the construction of a hydropower plant in Kalivac. Italian company requested the breach of contract and the EUR 137 million in compensation, plus costs of the claimant and the arbitration process.

Albania filed a counterclaim, arguing that Hydro S.R.L. was in breach and failed to fulfill the concession contract. That caused an EUR 158 million damage, which Albania requested as well as EUR 12,9 million of unpaid interest on accounts of the company’s failure to complete the HPP construction.

In its decision, the Paris-based arbitration tribunal said Hydro S.R.L must pay the compensation, the interest and a further 1.25 million euro in court expenses, the ministry explained in the statement.

In May 2017, the Albanian Ministry of Energy and Industry published a new tender for the construction of the Kalivac hydropower plant on the river Vjosa, emphasizing that special attention was going to be cast to the environmental impact of the submitted proposals.

In October, Ayen Enerji & Fusha, a Turkish-Albanian consortium, won a contract for construction and operation of a 120 MW Kalivac HPP, with a 35-year concession period.

The Ministry highlights that special attention was paid to the environmental impact of the projects. Thus measures were taken for reducing the impact on the water stream by creating a special fishway.

Construction works on Kalivac are projected to cost EUR 125.3 million and last two years and a half, the ministry of energy and infrastructure in Tirana said last year.  Annual electricity production at the future hydropower plant located near Kalivac village, in southern Albania, is projected at 366.6 million kWh.

Tags: ,
Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

unpaid-electricty-bills-kosovo-kostt

Kosovo* allocates EUR 40 million to cover unpaid electricity bills in northern municipalities

11 August 2022 - Residents of the four Serb-majority municipalities in the north of Kosovo* have not been paying electricity bills for over two decades

SEEPEX chief Power prices Southeastern Europe EUR 500 MWh fourth quarter

SEEPEX chief: Power prices in Southeastern Europe reach EUR 500 per MWh for Q4 2022

11 August 2022 - Futures for settlement in the fourth quarter indicate an electricity price in Southeastern Europe of EUR 500 per MWh, chief of SEEPEX Miloš Mladenović said

Drought-lowers-hydropower-plant-output-Serbia-Europe

Drought lowers hydropower plant output in Serbia, Europe

10 August 2022 - The water flow in Serbia's hydropower system dropped by a half, increasing the need for electricity imports, but the situation is similar across Europe

Norway power export controls drought hydropower reservoirs

Norway to impose power export controls

09 August 2022 - Norway is preparing a framework for limiting electricity exports at times when the levels of water in hydropower accumulations are low