ISLAMABAD : The Government’s controversial decisions about the Star Hydropower Project has made things difficult for the public sector entities which are dealing with issues related to Arbitration at the London Court of International Arbitration (LCIA),
Sources close to Managing Director PPIB, Shah Jahan Mirza told Newzshewz that Star Hydropower Limited has initiated LCIA arbitration No. 246356 in furtherance of the LCIA arbitration No. 215280 which is one the series of arbitration conducted between the Company and the National Transmission and Despatch Company (NTDC) concerning the 147 Patrind Hydropower Project located on the dual boundaries of Muzaffarabad and Khyber Pakhtunkhwa about issues concerning the tariff determination’s rendered by the National Electric Power Regulatory Authority o June 9, 2020 and July 29, 2020 and primarily due to NEPRA’s refusal to allow $ 94 million approximately from the total project cost of $ 420.127 million claimed by the Company .
The matter eventually culminated in the final award rendered by the sole Arbitrator Mr. Laurent Guoiffes on May 7, 2024. Subsequently, the Company sought to recover certain amounts purportedly awarded under the tariff award by calling upon guarantee on December 20, 2012, which demand was rejected by the Government of Pakistan, as a consequence the Company filed the Request for Arbitration before LCIA and initiated LCIA Arbitration No. 246356.
Therefore, foreign exchange of about GBP 65,000 / is immediately required to meet LCIA related Tribunal fee and LCIA charges submitted to PPIB so far, MD PPIB said requesting for NOC for immediate payment,
After explaining the background, PPIB has requested Power Division to refer the matter to Finance Division for allocation of foreign exchange budget cover/ remittance of GBP 65000/- through the State Bank of Pakistan against PKR funds to be provided by the PPIB provisionally due to the time constraints from its own resources to meet outstanding expenses with respect to the arbitration.
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