Slovakia expects to obtain €280m to €320m as compensation from Enel, after the local Bratislava court ruled the lease contract for the power firm’s local utility Slovenske Elektrarne to be invalid.
The 720MW Gabcikovo hydropower facility was managed by the Italian company, since it acquired 66% stake in the project in 2006 for €840m.
Slovakia, which owns 34% stake in the hydropower project, was intermittently involved in disputes over costs and construction of a new nuclear power station with Enel, reports Reuters.
The dispute regarding the hydropower facility had been continuing between the two parties since 2007, reports The Wall Street Journal (WSJ).
The court ruling and the decision to seek damage compensation follows Enel’s recent announcement to sell its stake for the project.
Slovakia Prime Minister Robert Fico was quoted by WSJ as saying: "We will strongly seek…that Enel returns all money which it earned operating the hydropower plant for eight years on the basis of an invalid contract."
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By GlobalDataThe hydropower facility is likely to have generated around €35m to €40m annually for eight years for Enel.
The Italian firm, however, remains sure about the validity of the contract and expects the ruling to not affect the sale of its stake in the hydropower project.
