To collect a project deposit from Galp over a failed power plant project.
In October 2007, Galp and the Portuguese State signed an agreement to construct an electric power plan in Sines. While the project was never realized, Galp place €8m into the bank Caixa Geral de Depósitos (CGD) as a guarantee that had been required by the state. The Portuguese is now preparing to execute the guarantee, charging that Galp failed to live up to its contractual obligations.
“The project to build a power station with natural gas in Sines has been closed since 2014, with Galp having incurred all the costs,” said Galp’s spokesman, Carlos Gomes da Silva. “There’s no reason for the state to run off with the deposit.” The oil company has two weeks to respond to the notification about the warranty.
