Turboatom : PJSC “Turboatom” will litigate decision of PJSC “Ukrhydroenergo”

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20.01.2017

19 January 2017 PJSC 'Turboatom' has filed suit to the Economic Court of Kyiv region, to contest results of PJSC 'Ukrhydroenergo' tender for reconstruction of Dnieper HPP-1 and award to consortium 'Andritz Hydro' (Germany, Austria).

9 August 2016 was announced tender for full reconstruction of three units (three Francis type turbines and three generators) of Dnieper HPP-1, in which PJSC 'Turboatom' took part.

23 December 2016 between PJSC 'Ukrhydroenergo' and consortium 'Andritz Hydro' was signed a contract regarding this information has been published on the official website of European Bank for Reconstruction and Development.

'Turboatom' considers this decision is not legitimate.

Under conditions of the first stage of tender, 'Turboatom' has fulfilled all mandatory requirements of contest, which are not allowed to submit alternative offers for manufacturing of equipment.

At the second stage 'Ukrhydroenergo' has made significant, previously not specified and agreed with participants, addenda to tender documents. Addenda do not contain specific requirements for design of generator of Dnieper HPP-1 and allowed to change in its design.

These circumstances allowed to consortium 'Andritz Hydro' with consent of customer without proper, full and complete analysis of issue on technical re-equipment of hydraulic power plant design offer console-type generator. Operation of this equipment can cause severe technological consequences, including man-made disaster, because Dnieper HPP-1 is operated for more than 80 years and does not provide for console-type generators.

Existing hydraulic units of HPP can be operated only with generators, which have two guide bearings. Otherwise, when using console type generator ten times increase load on dam with inevitable consequences for environment, human life and health.

To avoid this, it is necessary to change foundation of Dnieper HPP-1, including complete cycle of research, design and construction, which, in its turn, requires substantial investment.

Tender documents for project, financed by EBRD, did not provide for such item of expense.

Thus, financing of works on change in foundation due to adoption of consortium 'Andritz Hydro' offer further will be for responsibility of state budget of Ukraine.

In addition, in tender conditions said: '... if Contractor is a resident of Ukraine, the settling are carried out with him in national currency - hryvnia .... contract settlements with foreign residents are carried out in Euros. '

Comparative analysis of commercial offers, taking into account exchange rate difference at present moment shows that unit cost of equipment of consortium 'Andritz Hydro' is on 241 598.72 Euros more than unit cost of equipment, proposed by 'Turboatom.'

Third parties in the lawsuit are: State Property Fund of Ukraine and Ministry of Energy and Coal Industry of Ukraine, as each signed contract between Ukrainian manufacturers - it is support of domestic manufacturer, thousands of jobs and filling of state budget; Ministry of Finance of Ukraine, considering that loan provided by EBRD for reconstruction of Dnieper HPP-1, will be reimbursed by State; Antimonopoly Committee of Ukraine, since conditions of this tender are subject of signs of unfair competition.

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