June 11, 2019 (MLN): Subsequent to the arbitration proceedings initiated by Kot Addu Power Company Limited (KAPCO) against Water and Power Development Authority (WAPDA) and Central Power Purchasing Agency Guarantee Limited (CPPAG), the company in a notification to Pakistan Stock Exchange has informed that the International Chamber of Commerce (ICC) Tribunal in its Partial Award has dismissed the challenge by WAPDA to the jurisdiction of the ICC Tribunal.
KAPCO had commenced arbitration proceedings against WAPDA and CPPAG in Singapore on March 29, 2018, under the arbitration rules of the ICC to nullify the liquidated damages of Rs. 27,727,118,565 wrongfully imposed by WAPDA/CPPA-G, and to enforce its right to claim Rs. 2,446,520,553 comprising the Company’s net losses not otherwise covered by late payment interest.
The Government of Pakistan (GoP) was also made a party to the arbitration proceedings pursuant to the Facilitation Agreement it entered into with the Company and the Guarantee it issued in favor of the Company.
The ICC Tribunal further held that it has no jurisdiction over CPPAG and GoP. Moving forward, the regular hearing will continue on the merits of the case.
