Press reports say that PPC claims €80m (4.7% of FY09e EBITDA) from Greece’s natural gas company DEPA due to specific terms in the contract signed back in 2004.
The reports say that the above compensation is based on the annual guarantee quantities purchased by PPC and a term that allows PPC to participate in DEPA’s earnings (when the latter’s net earning exceed 8% of the total revenues). Both companies have filed for arbitration. We expect the whole process to take time, and affect the negotiations between the two companies for a new agreement. In other news, press reports claim that Kosovo’s government decided to cancel the tender for the construction of up to a 2,100MW power plant. Alternatively, Kosovo is planning to re-launch a tender by early 2010, though concerning a smaller plant (around 1,000MW). Recall that a JV of Enel and Sencap (a JV between PPC and Contour Global), as well as a consortium of CEZ and AES were the only bidders for the above project.
