Finnish utility claims $2.3 billion from Areva-Siemens for 5-year delay in nuclear project

HELSINKI – Finnish utility TVO is claiming €1.8 billion ($2.3 billion) in compensation from nuclear supplier Areva-Siemens for a five-year delay in the construction of the Olkiluoto 3 nuclear power plant.

Teollisuuden Voima Oyj says Monday it submitted the claim to the International Chamber of Commerce for arbitration proceedings with an “updated quantification estimate of TVO’s costs and losses” of some €1.8 billion, but added that the amount might change.

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The 1,600-megawatt European Pressurized Reactor – one of the first of its kind – has been plagued with delays caused by faulty materials and planning problems since construction began in 2005.

TVO says the supplier was constructing the €3 billion reactor – to have been online by 2009 – with a fixed-price turnkey contract and is responsible for the delay.