CORRECTION: Plant supplier updates its claimed amount in the delay to the OL3 project

18.11.2014

AREVA-Siemens consortium has informed that the quantification in the updated claim it submitted to the ICC arbitration proceedings on 23 October 2014 was incorrect.

Correction to the related stock exchange release of Teollisuuden Voima:

The updated quantification which the plant supplier submitted on 23 October 2014, and a correction to it thereafter, brings the total amount claimed by the supplier for events occurring during the construction period ending June 2011 to approximately EUR 3.4 billion. Among other things, this sum includes over EUR 1.2 billion in respect of penalty interest (calculated until October 2014) and payments allegedly delayed by TVO under the plant contract, as well as approximately EUR 150 million of alleged lost profit.

TEOLLISUUDEN VOIMA OYJ, STOCK EXCHANGE RELEASE 24 October 2014 at 16.00 EEST

Both parties to the dispute have updated their estimates of costs and losses caused by the delay to the Olkiluoto 3 nuclear power plant project as part of their recent submissions in the International Chamber of Commerce (ICC) arbitration proceedings. Teollisuuden Voima Oyj (TVO) procured OL3 as a fixed-price turnkey project from the plant supplier AREVA-Siemens consortium.

The updated quantification which the plant supplier submitted on 23 October 2014 brings the total amount claimed by the supplier for events occurring during the construction period ending June 2011 to approximately EUR 3.5 billion. Among other things, this sum includes over EUR 1.3 billion in respect of penalty interest (calculated until October 2014) and payments allegedly delayed by TVO under the plant contract, as well as approximately EUR 150 million of alleged lost profit.

TVO has previously considered the claims upon which the amounts demanded are based, and found them to be without merit. TVO will scrutinize the new material which has been submitted, and respond to it in due course.

- The plant supplier committed to deliver the nuclear power plant unit by an agreed date according to the contract and the supplier is responsible for the delay and the ensuing costs. Despite the arbitration, TVO continues to support the supplier to complete the project, says Risto Siilos, SVP in charge of legal affairs at TVO.

- TVO´s current quantification estimate of its costs and losses related to its claim in the arbitration proceedings is approximately EUR 2.3 billion until the end of 2018, which is the estimated start of the regular electricity production of OL3 according to the schedule submitted by the plant supplier in September 2014, Siilos continues. TVO´s updated estimate was submitted to the tribunal in the arbitration proceedings on 20 October 2014.

The arbitration proceedings were initiated in December 2008 by the OL3 supplier AREVA-Siemens consortium. The arbitration proceedings may continue for several years, and the amounts claimed may be updated again. TVO has not recorded any receivables or provisions on the basis of the claims presented in the arbitration proceedings.


For further information, please contact: Risto Siilos, Senior Vice President, Corporate Resources and Deputy CEO,
tel: +358 2 8381 5100