TGS Baltic has successfully represented Vilnius CHP in front of the Stockholm Chamber of Commerce arbitral tribunal on a contract termination dispute with Polish boiler maker Rafako.
According to TGS, the Vilnius CHP is responsible for the construction of the new combined heat and power plant in Vilnius – the Lithuanian government has declared this construction to be a project of national economic importance. The project is co-financed by the Cohesion Fund of the European Union. Upon completion, the Vilnius CHP will be among the most modern power plants of its type in Europe. When the Vilnius CHP project is fully implemented, the plant is planned to have a total electric capacity of just over 90 megawatts (including about 70 megawatts from biomass) and a thermal capacity of approximately 230 megawatts (including about 170 megawatts from biomass).
In terms of the dispute, according to the firm, “Rafako, as one of two contractors taking part in the CHP construction project, was responsible for the design and construction of the biomass unit. From the start of the project, however, Rafako struggled to meet its commitments and ultimately, in October 2020, withdrew from the project without completing its work. In its decision, the arbitral tribunal held that Rafako’s actions, which not only delayed the completion of the project but also made further construction more difficult, were unlawful.” It further announced that the Vilnius CHP is entitled to claim compensation for all the damages suffered. The specific size of the damages will be decided in another phase of the arbitration case.
The TGS Baltic team included Partners Vilius Bernatonis and Dainius Stasiulis, Senior Associates Tadas Varapnickas, Patricija Rukstelyte, Simas Paukstys, and Rugile Siaulyte, Associates Egle Masyte, Beatrice Stiopinaite, and Berta Kasetaite, and Junior Associate Emilija Valentinaite.