Mostostal Warszawa Files Arbitration Demand Against GE Hydro France Over $35 Million Claim
TL;DR
- Mostostal Warszawa initiated arbitration proceedings against GE Hydro France at the International Chamber of Commerce.
- The dispute centers on claims worth approximately $35 million related to a consortium agreement for the modernization of the Porąbka-Żar hydroelectric power plant.
- The case follows a contract termination by PGE Energia Odnawialna and the imposition of penalties in December 2025.
Overview
Mostostal Warszawa has filed a request for arbitration against GE Hydro France with the International Court of Arbitration under the International Chamber of Commerce (ICC), claiming damages estimated at $35 million. The claims stem from a consortium agreement related to modernization work at the Porąbka-Żar hydropower plant, following a contract termination and dispute over alleged breaches.
What Happened
On April 3, 2026, Mostostal Warszawa announced it had filed a request for arbitration against GE Hydro France at the ICC's International Court of Arbitration.
The claims are based on a consortium agreement dated April 21, 2022, under which Mostostal was a partner alongside GE Hydro France, the consortium leader, for the technological modernization of the Porąbka-Żar hydroelectric station for PGE Energia Odnawialna.
Mostostal's arbitration demand seeks to establish GE Hydro France's liability for consortium agreement breaches, to obtain compensation for resulting damages, and to secure indemnity from possible third-party claims, including from the project owner in light of a project termination declaration.
In December 2025, PGE Energia Odnawialna withdrew from its contract with the consortium and imposed contractual penalties, citing project delays, the inability to meet deadlines, and improper project execution.
Context
The Porąbka-Żar hydroelectric power plant modernization was a significant infrastructure project involving a consortium led by GE Hydro France with Mostostal Warszawa as a subcontractor.
Disputes in large construction and modernization projects frequently result in arbitration, especially when contracts involve multiple international parties and substantial financial stakes.
Why It Matters
- The case underscores recurring challenges in major infrastructure projects involving international partnerships and complex contracts.
- It may impact future relationships between project owners and engineering contractors in the region, and influence risk management strategies in similar consortia agreements.