Solar Parks in Belle-Vue: Rs 60 Million Fines Imposed on Corexsolar
The developer of the solar parks in Belle-Vue has been penalized for accumulated delays. In response to questions from Joanna Bérenger, Patrick Assirvaden clarified that the CEB is now considering a possible termination of the contracts.
The Renewable Energy Hybrid Facilities projects in Belle-Vue, led by SPV 30MW Belle Vue 2 Ltd and SPV 30MW Belle Vue 3 Ltd, continue to raise questions in Parliament. During the session on Tuesday, April 21, Joanna Bérenger sought to determine whether the observed delays were due to breaches of the Power Purchase Agreements (PPAs), particularly due to missed deadlines, unmet prerequisites, and successive site changes.
In response, the Minister of Energy and Public Utilities, Patrick Assirvaden, confirmed that financial penalties have already been imposed on the developer, Corexsolar International (Mauritius) Ltd. The total amount of the penalties comes to Rs 60 million, consisting of two fines of Rs 30 million each, corresponding to a financial guarantee deposited with the Central Electricity Board (CEB). The minister indicated that these penalties are in line with the contractual provisions outlined in the PPAs, which govern the producer's obligations regarding timelines and project implementation.
Regarding the termination of contracts, Patrick Assirvaden specified that the process is still under review. He explained that the CEB must first notify the developer of its intent to terminate, if applicable. The developer will then have a 15-day period to submit their comments.
At the end of this procedure, the decision to terminate will be at the discretion of the CEB, based on contractual elements and available legal opinions. When asked about the progress of this process, the minister confirmed that no notice of intent has been issued at this stage, indicating that the matter remains under analysis.
Deputy Joanna Bérenger also raised the issue of the fate of the "development security," which is the financial guarantee paid by the developer. On this point, the minister reminded that this amount can be withheld in the event of proven contractual breaches. However, in the case of a termination based on force majeure, this guarantee should be returned in accordance with the stipulated clauses.
Patrick Assirvaden clarified that any final decision will be made in light of a thorough legal analysis, involving the State Law Office. The accumulated delays, unmet conditions, and changes made to the projects remain crucial factors in the ongoing evaluation.
