Energy, Financial Services, Investments, Latvia, Legislation

Devon Archer is a US-based investor who recently became a minority shareholder of Norvik Banka.

Under the terms of the agreement, a company controlled by Devon Archer will acquire the majority shareholding in SIA Winergy from Indrek Kuivallik.

The new investor has also concluded an agreement with Norvik Banka restructuring the loans previously expanded for the development of Winergy wind assets. Winergy, which operates the largest wind farm in Latvia, will focus on the expansion of the wind park from the current capacity of 20.7 MW to app 56 MW and has plans to build another similarly sized facility for additional 50 megawatts of generating capacity.

As part of the agreement brokered by Mr Archer, AS Norvik Banka (Norvik) and Indrek Kuivallik are pleased to announce the settlement of all pending disputes involving SIA Winergy. Norvik has no further claims against Mr Kuivallik, his companies and business partners, and Mr Indrek Kuivallik has agreed to terminate the international investment arbitration against Latvia.

The settlement, which puts an end to a long series of disputes involving SIA Winergy and resolves all mutual claims, is a result of constructive efforts by both parties and a thorough analysis of the history of the Winergy project and of the bank’s involvement in renewable energy business. The parties’ disagreements originated from 2009-2010, a turbulent period for the Latvian economy, and led to mutual accusations and claims that the parties are now able to retract in full.

The parties hope that the settlement will lead to the prompt resolution of any remaining proceedings arising from their prior disagreements, and will contribute to the credibility and transparency of the Latvian business environment.

The Parties agreed to refrain from further comments on the settlement, and thank the media for respecting that agreement.