Are you sure?

Hungarian biomass producer sues state-owned electricity works for damages related to investment

Biomass production company Nad MPS-H Kft has filed a civil lawsuit against state-owned Hungarian Electricity Works (MVM) seeking HUF 9.6 billion in damages related to an unfinished investment to build an energy-reed production base in northern Hungary.

Nad claimed at a Friday hearing at the Budapest Municipal Court that MVM had provided the company with only about one-third of the HUF 2.5 billion in funding stipulated in a 2006 cooperation agreement for construction of a 5,500-square-meter reed-propagation facility in Batonyterenye. MVM also promised guarantees for an additional HUF 9 billion according to Nad.

MVM rejected Nad's claim, asserting that the company had unilaterally launched the project following negotiations between the two parties. MVM also questioned the validity of documents that Nad presented to the court. (Econews)