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Kraftanlagen ARGE Olkiluoto 3 lose out in arbitration proceedings

Lausanne – The German Institution for Arbitration e.V. (initials: DIS) has ruled against KAO in the arbitration proceedings between Kraftanlagen ARGE Olkiluoto 3 GesbR (KAO), consisting of Kraftanlagen München GmbH and Kraftanlagen Heidelberg GmbH, and Bilfinger Piping Technologies GmbH (BPT). For KAO, this ruling means one-off, non-recoverable project costs of around EUR 65 million, including the costs of proceedings to be borne. KAO is reviewing the option of seeking extraordinary legal remedies to have the arbitration ruling overturned.

After lengthy, but ultimately unsuccessful negotiations, KAO filed the arbitration claim in 2011, including claims arising from a terminated sub-contractor contract with BPT.

Kraftanlagen München GmbH is a 100% owned subsidiary of Alpiq AG. Its core business is the international construction of power stations and industrial facilities including associated services.

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