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Thursday, 28.03.2024, 13:12
Lithuanian court approves Ministry's deal with Danpower
The decision has been made by the Lithuanian Supreme Administrative Court, Danpower said on Thursday.
Neringa Lukoseviciene, the court's spokeswoman, confirmed this to BNS as well.
Energy Minister Zygimantas Vaiciunas has said that the amicable settlement of the dispute allows the government to avoid costly and lengthy litigation at Lithuanian and international courts, prevents the state from incurring potential losses amounting to tens of millions of euros, and sends a clear signal to investors that Lithuania is a reliable partner.
Under the deal, Danpower waives millions of euros' worth of claims against the state, which, in turn, pledges to deliver on its previous commitments, including an incentive tariff for the Kaunas biomass power plant.
The German company, however, had to give up its Vilnius combined heat and power (CHP) plant project.
The amicable agreement puts an end to eight cases at national and international courts.
Danpower agrees to withdraw its claims for compensation of losses worth 32 million euros in total, or 16 million euros for the Vilnius and Kaunas projects each, as well as an international investment arbitration claim worth 35 million euros and an action brought before the EU General Court.
Danpower, which is owned by the Hannover municipal utilities company Stadtwerke Hannover, says that it has invested almost 100 million euros in Lithuania. Its local subsidiary, Danpower Baltic, owns six biomass plants and one CHP facility.