ISLAMABAD: The Private Power and Infrastructure Board (PPIB) has requested foreign exchange to cover outstanding expenses related to international arbitration with M/s Star Hydropower Limited (SHPL). The Government of Pakistan is currently facing significant litigation challenges in this matter.
PPIB Managing Director Shahjahan Mirza stated that SHPL initiated arbitration against NTDC at the London Court of International Arbitration (LCIA), resulting in a May 18, 2022, award against NTDC. The verdict required NTDC to pay Rs2,019,318,458 for delayed invoices plus interest (KIBOR plus 4.5%), $16,452,807 as damages, $2,272,240 in legal costs, and GBP £51,180.02 for arbitration costs.
Following the GoP’s rejection of a December 20, 2012, guarantee for payment, SHPL initiated arbitration under the GoP guarantee at LCIA.
Previously, the Ministry of Finance issued a No Objection Certificate (NOC) on July 7, 2023, for GBP 472,101.10. To date, PPIB has paid GBP £172,836.31 to the Howard Kennedy law firm and LCIA court fees from the approved amount, with the NOC valid until June 30, 2024. An additional GBP £185,000 is required to cover further LCIA-related expenses.
PPIB has requested the Power Division to refer the matter to the Finance Division for the allocation of GBP £185,000 through the State Bank of Pakistan. Due to time constraints, PPIB will provisionally cover these expenses from its own resources.
Story by Mushtaq Ghumman
