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Lithuanian Energy group to ask Hitachi cover damages of stalled Vilnius plant construction

BC, Vilnius, 12.10.2016.Print version
After Lithuania's court of appeals has suspended the contract of construction of the waste burning part of the Vilnius Cogeneration Power Plant, the state-owned energy group Lietuvos Energija (Lithuanian Energy) intends to ask Japan's Hitachi energy corporation that filed the suit over the tender to compensate possible damages to the power utility and heating consumers, reports LETA/BNS.

"In light of importance of the project for Lithuania and the city of Vilnius, we intend to turn to court with a plea to apply measures of compensation of damages for the Vilnius Cogeneration Power Plant and Vilnius heating consumers with regard to the claimant. Our goal is to see the key energy project implemented in time, therefore, we expect extremely fast court performance in decisions in the case," said Nerijus Rasbuskis, director of the project service of cogeneration power plants.


On Tuesday, the Lithuanian Court of Appeals suspended the deal signed in late September on construction of the waste burning section of the Vilnius Cogeneration Power Plant. The 178.29 mln euro contract had been signed between Lietuvos Energija and Germany's Steinmuller Babcock Environment, Poland's largest engineering and infrastructure construction group Budimex and Lithuanian gas pipeline construction company Kauno Dujotiekio Statyba.


Interim measures had also been requested by Swiss company Hitachi Zosen Inova, operated by one of the world's largest power plant construction and equipment production corporations, Japan's Hitachi, and its Spanish partner Abener Energia.


The power plant was expected to launch energy production at the start of the 2018-2019 heating season. After signing of the contracts, Lietuvos Energija's CEO Dalius Misiunas said construction was to start in early 2017.






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