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

15.11.2017

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 execution of the construction works and the overall project management of the OL3 EPR project. This comprises many facts and matters that TVO relies upon in its main claim against the supplier, as well as certain matters that the supplier relies upon in its claims against TVO. The partial award finally resolves many of the facts and matters concerning the execution of the construction works in favour of TVO and notably defers many of the issues raised by TVO including the supplier’s project management for determination in a subsequent award.

This is the third significant final and binding partial award issued by the ICC Tribunal. The arbitration proceeding is still ongoing and it now proceeds towards the final award, in which the Tribunal will decide on 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. The three significant partial awards granted by the tribunal confirm this position and, following receipt of this partial award, TVO remains of the 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 in May 2019.

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

More information:
Risto Siilos, SVP Legal Affairs and Procurement, Deputy to the CEO

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