Finland nuclear reactor costs headed to arbitration -TVO

HELSINKI, Dec 31 (Reuters) - Franco-German consortium Areva-Siemens (CEPFi.PA)(SIEGn.DE) is to take TVO to arbitration in a dispute over delays and cost overruns at the Olkiluoto 3 reactor, the Finnish nuclear plant operator said on Wednesday.

In October, TVO was told by the consortium that the 1,600 MW reactor -- the first to be constructed in Western Europe for more than a decade -- would be further delayed to 2012 from its initial start-up target of 2009.

TVO claimed for compensation from the plant supplier consortium for losses and costs incurred due to the delay.

"The plant supplier, consortium Areva-Siemens, has filed a request for arbitration concerning Olkiluoto 3 delay and related costs," TVO said in a statement Wednesday.

"The request relates to a claim presented previously by the consortium to TVO, which TVO has studied and found to be without merit."

"TVO has a fixed price, turnkey contract with Areva-Siemens for the construction of the Olkiluoto 3 unit," TVO said.

TVO is owned by Finnish utility Fortum (FUM1V.HE) and Pohjolan Voima, a consortium of Finnish forestry and energy firms. (Reporting by Sakari Suoninen; Editing by Mike Nesbit)