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Victory in SCC dispute and conclusion of 8-year work for Vilnius-CHP project

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Victory in SCC dispute and conclusion of 8-year work for Vilnius-CHP project

After 8 years of work for VKJ, from project planning, development to construction and commissioning, we have assisted in the completion of the largest power plant in the Baltic States – Vilnius CHP.

Dr. Gudas has assisted VKJ in all stages of the project, firstly acting in the capacity as the Head of legal (2016-2020), then as of-counsel (2020-2023). Vilnius CHP project legal works involved and were not limited to:

  • Territorial planning and land acquisition
  • Public procurement procedures in value above 350 million EUR (selected 2 EPC contractors)
  • Financing arrangement (180 mio EUR) with the European Investment Bank
  • Two EU level investigations conducted by the European Commission: state aid infringement procedure and PILOT regarding waste market regulation
  • Case on state aid at Court of Justice of the European Union
  • Two SCC arbitral proceedings on interim measures application
  • High-value international mediation on Vilnius CHP waste plant conclusion (mediator – Bill Marsh)
  • SCC arbitration dispute regarding contract termination, contractual penalties, damages with a major contractor
  • More than 7 cases in national courts (administrative, civil)
  • Competition council investigation
  • Parliament of Lithuania investigations on the lawfulness of Vilnius CHP project
  • Legal assistance in licensing of the power plant and extension of permits
  • Management of consequences of unlawful termination of the biofuel contract, one of the largest of such kind in history of Lithuania
  • SVEA court proceedings in Sweden regarding SCC partial award annulment
  • Complex multi-party settlement negotiations in SCC case, with involvement of public actors from Poland and Lithuania

In such a complex project as Vilnius CHP it has been vital to ensure that legal processes are managed cost-effectively and efficiently. According to Dr. Gudas, this has been possible with huge VKJ management support, strong in-house legal team and competitive legal services tendering.

Karolis comments that essentially all major law firms have been involved in the project on one side or the other. In the project it has been a pleasure to work with Sorainen, TGS Baltic, Ellex, PwC Legal, Ecovis.

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