Fennovoima Oy’s decision to terminate the construction contract for the NPP in Finland has been declared unlawful by the Dispute Review Board, according to a statement from Rosatom. The Dispute Review Board (DRB) confirmed that in terminating the EPC contract for the reactor, Fennovoima had unlawfully rejected the works performed by RAOS Project Oy as the supplier. The DRB also found that the move was in breach of the EPC contract, which gives RAOS Project Oy the right to claim damages from Fennovoima Oy, Rosatom says.
The verdict suggests that Rosatom’s complaint is founded, with damages to be determined in additional proceedings.
However, Fennovoima argues that it terminated the contract eight years in to the project when it had still not proceeded from the design phase to construction and had accrued delays of almost a decade.
Acknowledging the DRB recommendation, Fennovoima nonetheless states that it is neither a final nor binding decision. Both parties have already submitted notices of dissatisfaction, Fennovoima says, and the company has subsequently initiated international arbitration proceedings against RAOS Project to recover the amounts to which it says it is entitled following its termination of the EPC contract.
