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

Uniper battery energy storage system Germany NGEN

Uniper to build battery energy storage system in Germany with NGEN

28 May 2024 - Uniper is planning to build a battery storage system at its Heyden power plant site in western Germany with energy solutions provider NGEN

montenegro offshore wind farms study

Montenegro’s offshore wind potential estimated at 2,300 MW – study

27 May 2024 - Miloš Bogdanović from Kotor, Montenegro, and Špiro Ivošević, professor at the Faculty of Maritime Studies in Kotor, authored the study

rimac energy belgrade energy forum wasim sarwar dilow bees

Rimac Energy provides innovative BESS solutions made in Europe

27 May 2024 - Rimac Energy is oriented toward designing, developing and manufacturing its battery systems in Southeast Europe

Belgrade Energy Forum energy storage is next big thing

Belgrade Energy Forum 2024 – energy storage is next big thing

25 May 2024 - There are exponential opportunities for energy storage investments to facilitate the green transition, main developers and operators in Southeast Europe said at Belgrade Energy Forum