TVO’s newest nuclear plant should have been up and running in 2009, but ten years later, they are promising to have the turn-key plant up and running next year.
The original turn-key contractor was a joint venture between Areva and Siemens. After a few years Siemens sold out (frustration with the French?) and Areva took over full control of the contract. Things went from bad to worse with disputes about the delays, for which both side demanded compensation. Areva’s financial position became fragile, and the delays and disputes continued. In the end, parts of Areva were sold off to EDF who were also very worried about the TVO contract and continued to demand compensation from TVO.
Demand and counter demands were lodged in the international arbitration court and that has taken years of highly paid lawyers arguments that have now resulted in a final win for the Finns…
The arbitration court appears to have ordered to French to pay over €300 million in compensation for these delays… The final amount has not yet been officially confirmed.
Whatever the size of the final outcome, it has been quite clear from press reports that the French have not had the degree of project management experience for such a large project.
The UK’s planned Hinkley Point nuclear plant, also to be delivered by Areva, will also probably be the same type of nightmare. The big difference. however, will be that the Finns were able to get a much better contract price that the brits who are obviously paying through the nose.