"NEK EAD" and Atomstroyexport JSC have signed an agreement
OREANDA-NEWS. National Electricity Company EAD (“NEK EAD”) and Atomstroyexport JSC (“ASE”) have signed an Agreement for Final Settlement of the Relations under the Award Between the Parties to ICC Arbitration Case No. 18086/GZ/MHM (the “Agreement”). As stipulated in the law for the granting of financing to NEK EAD for the repayment of amounts due by NEK EAD under the arbitration Award in respect of the Belene Project, passed on 28 September 2016 by the National Assembly of Bulgaria, the payments will be made based on an agreement signed by both parties. Thanks to the constructive dialogue between the two parties, this Agreement was signed by NEK EAD and ASE on 26 October 2016.
The amount awarded as of 14 June 2016 by the Arbitral Tribunal in Geneva amounts to a total of EUR 601,617,133 (principal and interest amount), after correction by the Tribunal of calculation errors totaling EUR 20.9 million. Until the full amount is paid, NEK EAD also owes daily interest to ASE of EUR 130,000. The two parties have reached an agreement for NEK EAD to make full payment to ASE on or before 25 December this year. Upon full payment of the amount due on or before 15 December 2016, ASE will forego the interest accrued after the arbitration Award was issued (interest from 14.06.2016 until 15.12.2016, which amounts to EUR 23,8 million). In the event that payment is made in the period between 16-25 December 2016, ASE will forego 55% of the interest accrued after the Award was issued. Upon signing this Agreement NEK made a voluntary partial payment in the amount of EUR 5 million which has been deducted from the total principal amount payable.
The Tribunal has informed the parties that calculation errors in the Award will be corrected. Once approval has been obtained by the ICC, the Tribunal will issue an Addendum to the Award, which will be notified to the parties.