12 C
Lahore
Saturday, December 10, 2022
Search
Generic filters
HomeNationalPatrind Hydropower Project: Korean firm files claim of $94mn compensation in LCIA

Patrind Hydropower Project: Korean firm files claim of $94mn compensation in LCIA

Korean investors have filed a claim against the government of Pakistan seeking $94 million compensation in the London Court of International Arbitration (LCIA) in the Patrind Hydropower Project.

The claim has stated that National Transmission and Dispatch Company (NTDC) could not evacuate electricity for 6-months after the Commercial Operations Date (COD) of the project along with the cost of constructing a point from where electricity was to be delivered to the national grid.

- Advertisement -

A local media report quoting a power division official said that the Korean firm Star Hydro Power Limited (SHPL) had set up the delivery point whereas NTDC wanted the delivery from another point but no objection was raised in this regard that resultantly increased the project cost which was not reflected in the true-up of the electricity generation.

The report also said that after considering the track record of the government, Prime Minister Shehbaz Sharif formed an arbitration committee to find out of court settlement options. Letters asking the reasons for not evacuating electricity on time were written to the NTDC and Private Power Infrastructure Board (PPIB) but there has yet been no reply from both departments.

The Patrind Hydropower Project was started to develop in April 2006 that became operational in November 2017.

- Advertisement -

Reports have also claimed that the attorney general’s office is now finalizing the plan for an out of court settlement because authorities have sensed that the cases of NTDC and PPIB are weak.

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Top news

Related articles