Pakistan wins a Rs.1bn liquidated damage claim against Chinese energy conglomerate

The London Court of International Arbitration was approached earlier this year by CPPA-G as well as a few subsidiaries of Zonergy Company Ltd in order to disconcert their disputes.

Recently, it was making the rounds in the media that a Chinese firm delayed our new renewable energy projects, to which Pakistan filed a liquidated damage lawsuit and according to the reports, Pakistan finally received the ruling in its favor yesterday.

As reported by the LCIA (London Court of International Arbitration) officials, Zonergy Company Ltd and CPPA-G (Central Power Purchasing Agency) received the final awards last week by LCIA because of their dispute.

In the ascertainment of their disputes, the arbitrator stated: “as agreed between the parties under the respective energy purchase agreements, represented a valid and binding obligation.”

Apart from that, the administration said while citing the awards: “Consequently, CPPA-G’s imposition of liquidated damages for the power projects’ delay in achieving COD (commercial operations date) by RCOD (required commercial operations date) was justified.”

The London Court of International Arbitration was approached earlier this year by CPPA-G as well as a few subsidiaries of Zonergy Company Ltd in order to disconcert their disputes under the agreement of setting up solar power projects signed between the three subsidiaries of Zonergy and CPPA-G.

The last hearing for 183,881, 183,884 and 183,885 (arbitration numbers LCIA) happened in Islamabad, from 29th April to 3rd May this year and it was initiated by independently working power producers. Whereas, the final awards by the LCIA were issued on 19th November; 2019.

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