ISLAMABAD: The London Court of International Arbitration (LCIA) has given ablow to Pakistan over the IPP case.
LCIA has permanently restrained Pakistan from challenging its rulingsregarding payment of Rs14 billion plus interest (Kibor+4.5%) to nineindependent power producers (IPPs) in local courts of Pakistan.
The LCIA has also maintained its earlier partial award in favour of nineindependent power producers under which the Government of Pakistan was topay Rs14 billion to IPPs. This means government of Pakistan is left with nooption but to pay Rs14 billion with interest of Kibor-4.5 percent.
These nine IPPs generated electricity for state-owned NTDC (NationalTransmission Dispatch Company) — the sole buyer of electricity. Under thelatest scenario, the Government of Pakistan needs to pay Rs235 billion toIPPs.
The nine companies that include Atlas Power, Liberty Power Tech, NishatChunian Power, Nishat Power, Hub Power Company, Saif Power, Orient PowerCompany, Sapphire Electric Company, and Halmore Power Generation Companywere the plaintiff and against the Pakistan government owned NTDC.
In its anti-suit injunction decision dated May 4, 2018, of which copy isavailable with The News, the LCIA concluded clearly saying: “The IPPs areentitled to a final anti-suit injunction, continuing the interim injunctiongranted by Males J, on the entirely straightforward basis that the seat ofthe arbitration is London. NTDC is to be restrained on a permanent basisfrom challenging the Partial Final Award in proceedings in Lahore,Pakistan, or anywhere other than England and Wales.” The judgment has beenauthored by LCIA judge Justice Phillips over the dispute between nine IPPsand National Transmission and Dispatch Company (NTDC).
Last year, a partial final award was issued in favour of the IPPs byholding that the NTDC should provide interim security for the IPPs’ claims.Later, the LCIA had also directed the NTDC to pay more than Rs14 billion tothe private power producers.