Oct. 30, 2000 (Prague Business Journal)The American power giant, AES Corporation, announced in an official statement that it has filed an action at an arbitration tribunal against the Hungarian Electricity Works Rt (MVM) and the State Privatization and Holding Co. (ÁPV Rt) for a damage of nearly Ft 100 billion.
AES says that MVM and ÁPV should either pay compensation for the $295 million worth of damage or they should respect the privatization agreement from 1996.
AES bought a majority stake in the Tisza Power Plant Rt in 1996 and agreed to build a new power plant and to modernize the Tisza Thermal Plant, while MVM and ÁPV guaranteed the purchase of the electricity generated by the AES facilities for 20 years. MVM hopes the tribunal will rule in favor of the company, said communication director Péter Müller. (Sat. MH 1) P.O.
2000, Prague Business Journal