Partial award granted in ICC arbitration concerning the delay of Olkiluoto 3 EPR project

20.7.2017

Teollisuuden Voima Oyj (TVO) has received a final and binding partial award in the ongoing International Chamber of Commerce (ICC) arbitration proceeding related to the delay and the ensuing costs incurred at the Olkiluoto 3 (OL3) EPR nuclear power project.
In this partial award the ICC Tribunal has addressed the preparation, review, submittal, and approval of design and licensing documents on the OL3 project. This comprises the key facts and matters that the supplier relies upon in its main claim against TVO, as well as certain matters that TVO relies upon in its claims against the supplier. In doing so, the partial award has finally resolved the great majority of these facts and matters in favour of TVO. Conversely, it has also rejected the great majority of the supplier’s contentions in this regard.

Although the partial award does not take a position on the claimed monetary amounts, it has conclusively rejected the analytical method used by the supplier to support its principal monetary claims against TVO. A previous partial award, which addressed the early period of the project in relation to the time schedule, licensing and licensability, and system design, likewise favourable to TVO, was granted in November 2016. The arbitration proceeding is still going on with at least one further partial award to come, before the final award where the Tribunal will declare the liabilities of the parties to pay compensation.

TVO considers its claims to be well-founded and has considered and found the claims of the supplier to be without merit. Both this partial award and the partial award of November 2016 provide further material confirmation of this position, and reinforce TVO’s view that the balance of the claims is in TVO’s favour.

The OL3 EPR was procured as a fixed-price turnkey project from a consortium (supplier) formed by AREVA GmbH, AREVA NP SAS and Siemens AG. The supplier consortium companies are jointly and severally liable for the plant contract obligations. According to the current schedule of the plant supplier, regular electricity production in the unit will commence at the end of 2018.

TVO has not recorded any receivables or provisions on the basis of claims presented in the arbitration proceedings.

More information:
Risto Siilos, SVP Business Support Services, Deputy to the CEO

Interview requests:
Pasi Tuohimaa, Manager, Corporate Communications, Tel. +358 40 544 5001