Kharkiv-based public joint-stock company Turboatom is trying to challenge the results of the tender held by public joint-stock company Ukrhydroenergo to reconstruct Dniprovska hydroelectric power plant (HPP) 1 won by a consortium from Germany and Austria Andritz Hydro, the press service of the enterprise has reported.

The company has filed a claim to the business court in Kyiv region.

"Turboatom believes that this decision is unlawful," the press service said.

Third parties in the case are Ukraine's State Property Fund, Energy and Coal Industry Ministry, Finance Ministry and Antimonopoly Committee.

The press service said that according to the conditions of the first stage of the tender, Turboatom has met all the mandatory requirements of the contest. The conditions did not allow submitting alternative offers for equipment manufacturing. At the second stage Ukrhydroenergo made significant amendments to the tender documents without discussing them with the tender participants.

"The amendments did not contain specific requirements for the design of the generator of Dniprovska HPP-1 and allowed to change in its design. These circumstances allowed consortium Andritz Hydro to offer a console-type generator after receiving consent from the customer without proper and complete analysis of the technical re-equipment of the HPP. Operation of this equipment can cause severe technological consequences, including a man-made disaster, as Dniprovska HPP-1 has been operated for more than 80 years and does not provide for the use of console-type generators," Turboatom said.

The press service said that existing hydraulic units can be operated only with generators with two guide bearings. Otherwise, when using a console-type generator the burden on the dam would grow hugely with inevitable consequences for environment, human lives and health.

"To avoid this, it is necessary to change the foundation of Dniprovska HPP-1, including the complete cycle of research, design and construction works, which, in turn, requires substantial investment. Tender documents for project financed by the EBRD does not provide for this expense. Thus, financing of the works to change the foundation due to adoption of consortium Andritz Hydro's offer further will be a responsibility of the national budget of Ukraine," the press service said.

The comparative analysis of commercial offers, taking into account exchange rate difference at present moment, shows that the cost of equipment offered by the consortium Andritz Hydro is EUR 241,599 more than the cost of equipment proposed by Turboatom.