A Danish firm which constructed a wind farm in Donegal for an Irish client will be paid £1.3 million (€1 million) under the terms of settlement of a High Court dispute between the two.

Last December, Dublin firm Saporito (Wind), secured an order restraining the Bank of Scotland (Ireland) from paying £1.3 million to Vestas Danish Wind Technology.

Saporito claimed it had contracted Vestas to build three turbines at Meenacloghspar, Co Donegal - known as the Anarget Wind Farm - and had already paid £300,000 for the project. The electricity was to be sold to the ESB under a power purchase agreement.

The Irish firm alleged that, while the turbines were completed and operational, they were not constructed in the locations specified and were therefore not in accordance with the planning permission. As a result, it was claimed, Saporito was left with "economically useless chattels" and could not legally sell electricity to the ESB. Vestas denied the claims.

Under the settlement, Vestas will get the money it is owed.