Holding Slovenske Elektrarne (HSE) and Termoelektrarna Šoštanj (TEŠ) have signed an out-of-court settlement with General Electric (GE) worth a total of EUR 261 million in favour of TEŠ. The deal is related to Alstom Power’s involvement in the construction of TEŠ unit 6. GE acquired Alstom’s power businesses in 2015.
Holding Slovenske elektrarne and its subsidiary, the operator of the Šoštanj thermal power plant, submitted a request on January 25, 2017, for arbitration against GE before the International Chamber of Commerce over Alstom Power’s involvement in the investment in unit 6 of TEŠ in 2008.
The purpose of the arbitration was to reclaim alleged damages resulting from the construction of unit 6
The purpose of the arbitration was to reclaim alleged damages resulting from the construction of unit 6, HSE Group said in a press release.
After more than three years of intensive work, the two sides reached a EUR 261 million settlement agreement.
The agreement includes payment in the amount of EUR 138.7 million
The agreement includes payment in the amount of EUR 138.7 million, services worth EUR 10 million and around EUR 12 million in other savings and cost reimbursements.
As the settlement is related to the commercial claim made by HSE and TEŠ in arbitration, both companies have withdrawn the statement of claim in return for the compensation in the arbitration procedure and renounced further damages claims in arbitration. The condition for the withdrawal of the arbitration and renouncement of the claim was fulfilled with the transfer of the first installment of the funds in the amount of EUR 131 million to TEŠ’s bank account, HSE Group said.
Services worth EUR 10 million include long-term maintenance and digitalization of unit 6
Services worth EUR 10 million include long-term maintenance and digitalization of unit 6 with the objective to get advanced maintenance of the key technical equipment of unit 6 and the positive effects of the increase in availability and efficiency.
Other savings and reimbursement of costs that HSE or TEŠ would otherwise incur for the operation of unit 6 or other related activities.