26.10.2009, 20:26
Court of Arbitration in Stavropolsky Kray Announced Its Judgment
OREANDA-NEWS. October 26, 2009. The Court of Arbitration in Stavropolsky Kray has declared void OGK-2 decision to break the EPC contract for construction of two power units at Stavropolskaya GRES, which they signed with E4 Group. The Court has also dismissed the counterclaim on advance payment in the amount of 8.8 billion rubles, filed by OGK-2 against E4 Group.
The Court of Arbitration has held that E4 Group had not violated any contract terms and conditions. Therefore, OGK-2 had no grounds to break the Contract unilaterally. The Court has stated that OGK-2 had fulfilled its contractual obligations in an undue manner, which had been holding up the project implementation for 12 months.
Thus, the Arbitration Court of Stavropolsky has delivered a judgment that OGK-2 broke the EPC contract illegally. According to the Court’s decision the parties shall re-launch the execution of the project ‘Construction of Stavropolskaya GRES’.
E4 Group said that after the Public Prosecutor\'s Office, the Accounts Chamber, the Russian Federation Ministry of Energy and the Russian Federal Service for Ecological and Technical Supervision (Rostechnadzor) examined the Contract execution, it was obvious what kind of judgment the Court of Arbitration would make. We would like to remind of the fact that the Accounts Chamber in collaboration with the Ministry of Energy and Rostechnadzor had previously carried out a full-scope audit of OGK-2 investment program implementation. Following the audit results, the Accounts Chamber of the Russian Federation sent a statement to Mr. Neveinitsyn, General Director, OGK-2, saying that with regards to Stavropolskaya GRES construction project, OGK-2 had not been sticking to the contract schedule and fulfilling its contractual obligations to E4 Group, an EPC contractor. It was also declared that OGK-2 had no rights and reasons to break the contract in a unilateral manner. The audit results were approved by the Board of the Accounts Chamber on July 17, 2009.
‘E4 Group had to take a legal action against OGK-2 due to their unconscionable refusal to execute the contract, and zero response from OGK-2 to our requests and proposals. E4 Group’s aim was to complete the investment program implementation, to protect social and economical interests of the company and its employees,’ comments E4 Group.
We have been satisfied with the Court’s judgment that fully justified our position. E4 Group is sure that this case should not go to court. The Company expects that OGK-2 will make the only proper solution to come to the negotiating table and keep on working with E4 Group cooperatively for the construction of Stavropolskaya GRES.
The Court of Arbitration has held that E4 Group had not violated any contract terms and conditions. Therefore, OGK-2 had no grounds to break the Contract unilaterally. The Court has stated that OGK-2 had fulfilled its contractual obligations in an undue manner, which had been holding up the project implementation for 12 months.
Thus, the Arbitration Court of Stavropolsky has delivered a judgment that OGK-2 broke the EPC contract illegally. According to the Court’s decision the parties shall re-launch the execution of the project ‘Construction of Stavropolskaya GRES’.
E4 Group said that after the Public Prosecutor\'s Office, the Accounts Chamber, the Russian Federation Ministry of Energy and the Russian Federal Service for Ecological and Technical Supervision (Rostechnadzor) examined the Contract execution, it was obvious what kind of judgment the Court of Arbitration would make. We would like to remind of the fact that the Accounts Chamber in collaboration with the Ministry of Energy and Rostechnadzor had previously carried out a full-scope audit of OGK-2 investment program implementation. Following the audit results, the Accounts Chamber of the Russian Federation sent a statement to Mr. Neveinitsyn, General Director, OGK-2, saying that with regards to Stavropolskaya GRES construction project, OGK-2 had not been sticking to the contract schedule and fulfilling its contractual obligations to E4 Group, an EPC contractor. It was also declared that OGK-2 had no rights and reasons to break the contract in a unilateral manner. The audit results were approved by the Board of the Accounts Chamber on July 17, 2009.
‘E4 Group had to take a legal action against OGK-2 due to their unconscionable refusal to execute the contract, and zero response from OGK-2 to our requests and proposals. E4 Group’s aim was to complete the investment program implementation, to protect social and economical interests of the company and its employees,’ comments E4 Group.
We have been satisfied with the Court’s judgment that fully justified our position. E4 Group is sure that this case should not go to court. The Company expects that OGK-2 will make the only proper solution to come to the negotiating table and keep on working with E4 Group cooperatively for the construction of Stavropolskaya GRES.
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