SEC signs SR2.9bn deals

Updated 28 July 2013

SEC signs SR2.9bn deals

Saudi Electricity Company on Saturday signed six contracts worth SR2.9 billion with national companies for the important and installation of 380KV transformer stations in various parts of the Kingdom.
Ali bin Saleh Al-Barrak, CEO of the company, who signed the contracts, said the agreements included three transformer stations in Riyadh, adding that it would help meet the growing demand for electricity in the region.
“These three stations will become operational within 27 to 29 months,” the CEO said.
Two of the six contracts are related to establishing a transformer station in Jeddah and installing ground cables required for that project, Al-Barrak said.
“This project, which will be ready in 29 months, aims at boosting electricity supply in the Western Province,” he said.
The last contract was for the establishment of a transformer station in Shadqam in the Eastern Province city of Al-Ahsa, he said, adding that it would take 29 months to complete.
“All these new projects will increase the country’s power supply and help avoid supply disruptions,” the CEO said, adding that it would contribute to boosting the Kingdom’s economic and industrial growth.
In a related development, SEC signed a deal worth SR1.3 billion with Bahra Cables to supply low and medium voltage cables for its projects in 12 months.
 This deal comes within various agreements worth SR6.3 billion signed by Saudi Electricity Company with national factories for the supply and delivery of medium voltage cables 13.8 to 36KV and low voltage cables 400V within 12 calendar months.
Bahra Cable had received two other contracts from SEC for SR580 million earlier this year.
Talal Idriss, CEO of Bahra Cables, expressed the company’s pride in its products and the trust it has in SEC, and assured that “such trusts will spur Bahra Cables to work harder in order to further develop itself to meet the terms and specifications of cables in Saudi Arabia.”
Since its inception, he said, Bahra Cables uses latest international technologies to produce high quality cables that the major projects in Saudi Arabia require, as well as for exporting them to many overseas markets.
Idriss said the company’s products meet international standards, and that the company has received a number of accreditation certificates such as (KEMA, IPH, SASO, LPCB, CSA, BASEC) and others for its production of power cables.
Idriss said the Kingdom’s cable industry is currently undergoing major expansion to meet the growing demand for the implementation of major projects, as well as to meet the needs of the construction sector in general.
“The national companies are capable to meet about 90 percent of the Kingdom’s cable needs,” he said, adding that the cables are produced at the highest level and in accordance with local and international standards.

New emissions blow for VW as German court backs damages claims

Updated 26 May 2020

New emissions blow for VW as German court backs damages claims

  • Scandal has already cost firm more than €30 billion; ruling serves as template for about 60,000 cases

KARLSRUHE, Germany: Volkswagen must pay compensation to owners of vehicles with rigged diesel engines in Germany, a court ruled on Monday, dealing a fresh blow to the automaker almost 5 years after its emissions scandal erupted.

The ruling by Germany’s highest court for civil disputes, which will allow owners to return vehicles for a partial refund of the purchase price, serves as a template for about 60,000 lawsuits that are still pending with lower German courts.

Volkswagen admitted in September 2015 to cheating in emissions tests on diesel engines, a scandal which has already cost it more than €30 billion ($33 billion) in regulatory fines and vehicle refits, mostly in the US.

US authorities banned the affected cars after the cheat software was discovered, triggering claims for compensation.

But in Europe vehicles remained on the roads, leading Volkswagen to argue compensation claims there were without merit. European authorities instead forced the company to update its engine control software and fined it for fraud and administrative lapses.

Volkswagen said on Monday it would work urgently with motorists on an agreement that would see them hold on to the vehicles for a one-off compensation payment.

It did not give an estimate of how much the ruling by the German federal court, the Bundesgerichtshof (BGH), might cost it.

Volkswagen shares were 0.5 percent lower. The BGH’s presiding judge had signaled earlier this month he saw grounds for compensation.

Costs mount

“The verdict by the BGH draws a final line. It creates clarity on the BGH’s views on the underlying questions in the diesel proceedings for most of the 60,000 cases still pending,” Volkswagen said.

A lower court in the city of Koblenz had previously ruled the owner of a VW Sharan minivan had suffered pre-meditated damage, entitling him to reimbursement minus a discount for the mileage the motorist had already
benefited from.

The court at the time said he should be awarded €25,600 for the used-car purchase he made for €31,500 in 2014.

“We have in principle confirmed the verdict from the Koblenz upper regional court,” said BGH presiding federal judge Stephan Seiters.

Volkswagen had petitioned for the ruling to be quashed altogether by the higher court, while the plaintiff had appealed to have the deduction removed.

A Volkswagen spokesman said that outside Germany, more than 100,000 claims for damages were still pending, of which 90,000 cases were in Britain.

The carmaker also said it had paid out a total of €750 million to more than 200,000 separate claimants in Germany who had opted against individual claims and instead joined a class action lawsuit brought by a German consumer group.

The carmaker said last month it would set aside a total of 830 million for that deal.

In a separate court, Volkswagen agreed last week to pay €9 million to end proceedings against its chairman and chief executive, who were accused of withholding market-moving information before the emissions scandal came to light.