“Alvora” asked the VERT to cancel the decision, obliging to change the details of the Russian GIPL

According to Vaidas Kazlauskas, General Director of Alvora, the regulator obliged the gas transmission company Amber Grid to replace a part of the GIPL component allegedly by providing false and misleading information.

The decision was made after Amber Grid withheld part of the information about the requirements for the gas pipeline and its details from VERT, V. Kazlauskas is quoted in our report.

In mid-April, VERT stated that Amber Grid did not properly approach the construction of GIPL, therefore the operator was obliged to change the details of the gas pipeline of 123 Russian origins.

According to Alvora, the plan did not state that the use of components of Russian origin was prohibited due to the risk of implementation of the construction of GIPL, which is related to the verification of national security.

The security plan did not contain any approved ban on the use of materials or parts of Russian origin for the implementation of the GIPL project, and accordingly there was no provision related to Alvora’s duty to control the origin of the goods supplied by the supplier, the contractor said.

According to her, GIPL’s security plan contained other criteria for possible risks to national security: if Russia or other third parties delay, sabotage or otherwise interfere with the construction of the gas pipeline, if confidential information about the project is leaked, or there is a geopolitical or reputational risk due to Alvora’s previous projects in Russia or Belarus.

In addition, the security plan, according to Alvora, specifies that she must avoid actions that increase financial risks when entering into transactions with third parties, inform Amber Grid about all transactions related to GIPL with third parties.

Finally, during the construction of GIPL, Alvora had to get Amber Grid’s approval if we were going to conclude a deal with a third party worth more than 5 million. EUR, and reported about more than 3 mln. EUR value of planned transactions.

According to V. Kazlauskas, VERT’s decision to change the parts was based on the information provided by Amber Grid that the parts of the gas pipeline were allegedly made of non-standard steel, although they were made of higher quality steel than was required in the contract, which Amber Grid also attached.

The fact that the used parts were Russian, he said, was not a matter of Alvora’s control. According to him, the fittings are of high quality, there is no point in changing them.

After VERT announced the conclusions of the investigation, Amber Grid blamed Alvora for the details of the Russian installation and announced that it plans to appeal the regulator’s decision.

According to Amber Grid, the GIPL contract and construction technical regulations provide that the contractor is responsible for meeting the requirements in detail.

Nemunas Biknius, the head of Amber Grid, said that he tried to implement details that he did not have a proper document for.

Dainius Kreivys, the Minister of Energy, has said that during the construction of GIPL Alvora, the forged component will raise documents, the Amber Grid’s access points.

GIPL’s largest investment in the development of the Lithuanian gas transmission system since independence. Lithuania allocated 116 million for the project. Eur. The total value of the project is about 500 million. Eur, about 60% allocated by the European Commission.

The main gas pipeline connecting Lithuania and Poland started operating in 2022. May 1

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