The Minister of the Environment and Energetic Transition guaranteed again this Tuesday that EDP will not be reimbursed for its investments in the Fridão Damn project suspended in 2016.
João Matos Fernandes, Minister of the Environment and Energetic Transition, guaranteed again this Tuesday that it will be no restitution of the 218M€ that EDP invested for the concession of the Fridão’s Damn project after its suspension in 2016.
“I have no doubts about the reasonableness of our position. EDP will not be reimbursed”, the minister said while at an Environment Committee’s hearing in Parliament. Matos Fernandes recalled the correspondence exchanged between the government and the company to claim that it was EDP who suspended the project.
Accordingly, the government’s interpretation of the letters indicated that EDP would not move forward with the project. EDP, however, strongly disagrees and contemplates further legal actions.
218 M€ plus corresponding damages and discontinued profits
For Matos Fernandes, Fridão’s project revealed to be not as profitable as it was first thought, taking into consideration the demand, the market and the technological evolution since then. Factors that justified the lack of interest from EDP, which might have led the company to change ideas, the Minister accused.
However, it is not just because of the project suspension and the 218M€ that EDP is holding grudges against the government. Just as ECO wrote, the company can also claim for compensation for “corresponding damages” and “discontinued profits”, which might raise the figures by some more dozens of millions of euros.
EDP cannot quit the project unilaterally, a legal opinion provided by CEJUR states. CEJUR said back in 2016 that only the state will be able to decide on behalf of the public interest whether EDP can quit from the project or not.