Patrind AJK Hydro Power Project Secures Landmark Arbitration Victory


In a significant legal development, RIAA Barker Gillette, in collaboration with a leading English Law Firm, has achieved a decisive victory in arbitration proceedings against the Government of Pakistan (GOP) on behalf of Star Hydro Power Limited (SHPL). The final award, issued by the London Court of International Arbitration (LCIA), mandates the GOP to pay substantial amounts to SHPL within 21 days: PKR 2,019,318,458, USD 16,452,807, USD 2,727,240, and GBP 51,180.02.

The arbitration revolved around the GOP’s responsibilities under a sovereign guarantee related to a 147 MW hydro power project in Patrind AJK, established under the 2002 Power Policy. Delays in power purchaser interconnection works by the National Transmission and Despatch Company Limited (NTDC) led SHPL to seek recourse under the sovereign guarantee.

The arbitrator’s ruling in favor of SHPL in both phases of the arbitration marks a landmark decision. The first phase addressed the binding nature of the award against NTDC under the guarantee, affirming the GOP’s liability. Subsequently, critical issues concerning the legality of demands under the guarantee and the binding nature of costs awarded under the power purchase agreement (PPA) arbitration were addressed.

Mr. Nadir Altaf, Partner at RIAA Barker Gillette, expressed delight at the arbitrator’s decision, highlighting the importance of upholding contractual obligations and ensuring accountability in commercial dealings. This victory not only underscores the firm’s commitment to excellence but also sets a precedent for future arbitration cases, showcasing RIAA Barker Gillette’s expertise in navigating complex legal disputes and delivering exceptional results for its clients.

Related posts