Vilnius Commercial Arbitration Court (hereinafter – Arbitration) approved on 29 January 2016 a peaceful agreement concluded between AB Kauno Energija (hereinafter – the Company) and UAB Kauno Termofikacijos Elektrinė (hereinafter – KTE) on 23 December 2015 by which a litigation in case No. 268 regarding noncompliance of Investment agreement of 31 March 2003 (including all changes) (hereinafter – Investment agreement) was terminated. The litigation continued since April 2013. The decision of Arbitration was received by the Company on 02 February 2016.
Following essential terms of peaceful agreement:
1. Investment agreement between both sides is being terminated.
2. KTE obliges to pay compensation for the Company in amount of EUR 2,316,960.15 following this order:
2.1. KTE immediately acknowledges sum in amount of EUR 1,592,910.10 suspended by the Company as a part of the compensation paid by KTE and resigns any claims;
2.2. KTE obliges to pay EUR 724,050.05 to the Company in equal parts yearly until 28 February 2018. First contribution must be paid until 28 February 2016.
3. KTE disposes part of Kaunas critical centralized heat supplies infrastructure to the Company for proprietorship as a non-financial compensation, i.e. immovable property (manifolds building and coherent pipelines) as well as part of technological circuit equipment, necessary to the Company (hereinafter together – the Assets).
4. The Company leases technological circuit equipment taken from KTE for KTE for the 25 years period, manifolds building – for 15 years period and subleases land for the 15 year period holding the right for bargain regarding additional term until KTE performs its activity and remains able to pay.
5. KTE obliges to make certain a proper maintenance and upkeep of the Assets as well as a proper functioning of the whole centralized heat supplies system in so far as it is coherent to the Assets, and the Company holds the right for modernization of manifolds building and other assets taken at the discretion of its own and at its own expenses, not changing their functionality.
6. The Company gains the lease right to the part of land plot, coherent with the Assets taken and (or earlier if KTE will not continue cogeneration activities, or later if the sides will agree regarding additional term of lease of manifolds building and of sublease of the land plot) is able to develop this land plot at the discretion of its own according to the legislation after 15 years period.
Loreta Miliauskienė, Head of the Economics and Planning Department, tel. +370 37 305 855