Chinese wind turbine maker Xinjiang Goldwind Science & Technology (HKG:2208) and Sinoma Wind Power Blade Co Ltd have agreed to split 40/60 the payment of USD 71.3 million (EUR 62.7m) in damages and legal fees, awarded to the developer of a 215-MW wind project in Panama, for which Goldwind and Sinoma supplied equipment.
The sum includes a compensation amount of USD 66.6 million to UEP Penonome II SA, a unit of InterEnergy Holdings, which in April 2014 awarded Goldwind a wind turbine supply agreement for its project, and then in the autumn of 2015 filed an arbitration application with the American Arbitration Association (AAA) due to defects with the Sinoma blades. Because the materials used for manufacturing the blade tips were not consistent with the technical specifications provided by Sinoma, UEP II was worried it would face safety issues during operation of the wind park.
UEP II’s arbitration application coincided with another filed by Goldwind with the AAA, prompted by UEP II’s refusal to pay the wind turbine maker for certain work and services it provided as part of the wind project. The Arbitration Association in January 2018 ruled that UEP II had to pay USD 24.9 million, plus interest, to Goldwind in compensation for the breach of contract, while it also awarded the project company UEP USD 66.6 million for damages suffered due to the blade quality issue and USD 4.7 million for legal fees and expert fees it incurred.
Under the “Project Panama Site II Dispute Settlement and Strategic Cooperation Agreement” signed this Monday, Goldwind shall pay USD 28.5 million of the amount due to UEP II, while Sinoma will pay the bigger portion -- USD 42.8 million.
UEP Penonome II developed and now operates the 215-MW Penonome II wind farm in Panama. Goldwind was selected back in 2014 to deliver 86 pieces of 2.5-MW Permanent Magnet Direct-Drive (PMDD) turbines for the park. The Chinese company at the time awarded Sinoma Blade an order for 86 sets of blades with the contract value of CNY 146.1 million (USD 21.3m/EUR 19m).
(USD 1 = EUR 0.88)
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