29 Jul 2019

Samoan power company faces multi-million dollar lawsuit

7:07 am on 29 July 2019
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Photo: 123rf

Samoa's only electricity provider, Electric Power Corporation, is facing a $US5.6 million lawsuit by an American multi-national renewable energy company, Louis Berger Power.

The New Jersey-based company claims EPC tried to renegotiate a contract for generating renewable energy on Savaii.

According to the Samoa Observer, the company claims the renegotiations came after it was already chosen as a successful bidder for the project and it had already incurred expenses.

Louis Berger Power said an additional condition introduced by EPC tied an irrelevant tariff cost to diesel and substantially changed the contract, contrary to rules that allowed only minor changes.

It is claiming loss of profits over a 20-year period of $US5.4 million and exemplary costs of $375,000.

The case continues in Samoa's Supreme Court.

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