Months ago the U.S. company Transglobal Green Energy (TGGE), called on the Panamanian government to reach an agreement on the cancellation of an award for a hydroelectricity plant which was subsequently awarded to Grupo Ideal owned by Carlos Slim, however, lack of action by the authorities led the company to take further action.

The Center for Settlement of Investment Disputes (CIADI) notified the Panamanian Government that it had received a complaint from TGEE "based on a bilateral treaty that makes differences between countries and companies with U.S. capital fall into the category of an matter between two states (Panama and the United States in this case)", reported Laestrella.com.pa.

"We are here in the defense of Panamanian justice and the reaction of the current government has brought us to the point where we are today," said Rick Reyes, executive of TGGE.

The Panamanian government never paid any attention to the ruling of the Supreme Court and instead ordered the rescue of the award so that Grupo Ideal could maintain control. The company benefits from a business which has generated about $50 million without interruption since 2007.

Source: laestrella.com.pa

More on this topic

Ruling Favors El Salvador in Mining Dispute

October 2016

The International Centre for Settlement of Investment Disputes has ruled in favor of El Salvador in the dispute with the mining company OceanaGold, owner of the El Dorado gold mine.

From a press release by OceanaGold Corporation:

(MELBOURNE) OceanaGold Corporation (TSX/ASX/NZX: OGC) (the “Company”) has been advised that the arbitration tribunal constituted by the World Bank’s International Centre for Settlement of Investment Disputes (“ICSID”) has found in favour of the Government of El Salvador (the “Government”) in its dispute with an OceanaGold indirect subsidiary company, Pac Rim Cayman LLC. ICSID granted an award of US$8 million to the Government of El Salvador to cover its legal fees and costs.

ICSID Arbitration Rules in Favor of Panama

June 2016

The Centre for Settlement of Investment Disputes has ruled against the businessman Julio Lisac, who filed the suit after cessation of a concession for a hydroelectric project.

From a statement issued by the Ministry of Economy and Finance:

Lawsuit Against El Salvador for Investment in LAGEO

August 2013

The Italian consortium Enel has filed a case against the Salvadoran State with the ICSID over a dispute on equity interest in the geothermal plant.

The case was filed with the International Centre for Settlement of Investment Disputes (ICSID).

The lawsuit, according to the company, is due to the government trying to be more involved in LaGeo, and also because they believe they have been denied their legitimate rights.

Litigation Over Hydroelectric Concession in Panama

June 2013

Transglobal Green Energy has summoned the Panamanian government to make an agreement over a hydroelectricity concession which was annulled and then granted to a company belonging to Carlos Slim.

June 24 is the deadline that Transglobal company lawyers have given the Government to settle in an amicable way the case regarding the concession of a hydroelectic station in the Rio Chiriqui Viejo, before going to an arbitration process.