ZAGREB, Jan 23 (Hina) - The Croatian government on Thursday authorised the state power supply company HEP to launch the peaceful settlement of disputes with Slovenia concerning the jointly owned Krsko nuclear power plant, based on the
Energy Charter agreement.
ZAGREB, Jan 23 (Hina) - The Croatian government on Thursday
authorised the state power supply company HEP to launch the
peaceful settlement of disputes with Slovenia concerning the
jointly owned Krsko nuclear power plant, based on the Energy
Charter agreement. #L#
This is in effect the start of pre-arbitration concerning the
Slovenia-located plant. HEP has announced the Slovene side will be
offered to compensate for Croatia's property in the plant which was
confiscated with a 1998 decree.
Slovenia will be asked for some US$720 million for Croatia's half
ownership in the power plant. With the addition of interest
accumulated from the end of July 1998, the figure goes up to exceed
$900 million, HEP representative Kazimir Vrankic told Hina.
Slovenia has already said the $720 million asked is "too high and
absurd". In the past, when it first expressed interested in
Croatia's half part-ownership, Slovenia offered $150 million,
which Croatia sees as a "symbolic amount".
Under the Energy Charter, Slovenia has three months to take a stand
on HEP's pre-arbitration offer, said Vrankic. If Slovenia fails to
do so, if it turns the offer down, or if Croatia refuses a counter-
offer, the matter goes to international arbitration, he
explained.
HEP had said pre-arbitration would be launched early this year to
avoid statute of limitations for initiating international
arbitration. The Energy Charter stipulates that this arbitration
must be launched five years at the latest after the beginning of the
dispute.
In Krsko's case this is the end of July this year as in late July 1998
the Slovene government adopted a decree which transformed the plant
into a public company. HEP has not been receiving electricity from
Krsko since.
Pre-arbitration is launched also because Slovenia's parliament has
not ratified a Croatia-Slovenia deal on Krsko more than 12 months
after its signing.
The Croatian parliament approved the deal in late 2001.
Although some Slovene politicians, including Prime Minister Anton
Rop, maintain the deal should be ratified, the local management of
Krsko strongly opposes it.
(hina) ha sb