Finnish TVO set for long row with Areva, Siemens

by Staff Writers
Helsinki (AFP) Oct 20, 2009

Finnish utility TVO said Tuesday it expected a lengthy dispute with France's Areva and Germany's Siemens over cost over-runs and delays in their construction of a Finnish nuclear reactor.

The plant being built in Olkiluoto, western Finland, was originally scheduled to start operating this year, but the project has fallen more than three years behind its original schedule, prompting a bitter fight between the three companies.

In a financial report for January-September published on Monday, TVO said it had demanded that Areva and Siemens pay compensation of around 1.4 billion euros (2.1 billion dollars) for the delays.

Meanwhile Areva and Siemens have asked for around one billion euros from TVO, arguing that the project has encountered "more rigorous security requirements" than initially foreseen.

Last week TVO said the new reactor's start date could be delayed beyond June 2012 and said it had asked for a new timetable from Areva and Siemens.

The Finnish firm posted in the first nine months of this year a loss of 30.4 million euros on turnover of 226 million euros.

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