Samoa’s only electricity provider, Electric Power Corporation, is facing a $ST15 million lawsuit by an American multi-national renewable energy company, Louis Berger Power, LLC of New Jersey.
Louis Berger Power,which built ASPA’s power plant at Satala, is claiming EPC tried to renegotiate a contract for generating renewable energy on Savaii island.
According to Samoa Observer, the company’s statement of claim released in open court this week says that the renegotiations came after it was chosen as a successful bidder for the project and it had already incurred expenses.
Louis Berger Power said in it’s 2017 statement that an additional condition introduced by EPC tying a tariff cost to diesel costs was not relevant to the contract and substantially changed it, contrary to rules that only allow for minor changes.
“Renegotiations of the key contractual terms after a contract is awarded is prohibited,” said the company.
It is claiming loss of profits over the 20-year period of $14.5 million and exemplary costs of $1 million.
