Contractor Building Greece-Bulgaria Interconnector to Pay Full Forfeit for Delayed Construction

18.2.2023
SOFIA, 17.02.2023 13:45 (BTA) The Energy Ministry together with the management of ICBG AD held negotiations with the contractor building the Greece-Bulgaria Gas Interconnector project. It was agreed that the full amount of forfeit due to ICBG AD will be paid, the Energy Ministry said in a press release. This agreement marks the end of several months of tense negotiations, Energy Minister Rosen Hristo said, noting that the Greek side was demanding tens of millions related to additional construction activities and the rise in prices, while the Bulgarian side has demands related to compensations for the delay in construction. In Hristov's words, the success is the result of the exceptional technical and legal preparation on all matters of dispute, as well as the transparent and construction approach to the defence of Bulgaria's position. The active negotiations resulted in an agreement fully defending the interests of ICGB and Bulgaria. The contract with Greek company AVAX is subject to indexation in accordance with the Public Procurement Act and the procedure applicable to all inflation- and COVID-affected contracts. AVAX withdraws all its demands and commits to pay the compensation for the delay. The agreement prevents a subsequent potential arbitration case, Hristov explained. The ICGB company said the details remain confidential information but express satisfaction with the friendly solution to the dispute and the agreements reached, which successfully defend the operator's interests. The agreement is to be approved by share holders in ICGB, the Energy Ministry writes. /DS/ DIMITRINA SOLAKOVA, The meeting between Energy Minister Hristov (middle) and ICGB management (Energy Ministry Photo), source: https://www.bta.bg/en/news/economy/409246-contractor-building-greece-bulgaria-interconnector-to-pay-full-forfeit-for-delay