CEZ averts arbitration by agreeing to pay compensation

The Czech power utility CEZ has agreed to pay compensation to the French company Dalkia after it pulled out of an agreement in 2000 that would have seen the companies set up of a joint-venture to operate in the Czech Republic. Dalkia had filed for arbitration in Paris earlier this year, estimating the damages at almost 19 million euros. A CEZ spokesman has said that the compensation offered was one third lower than that amount, but did not name the exact figure. He also said that the two companies also signed an agreement officially terminating the dispute.