Litigation Over Hydroelectric Concession in Panama

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.

Tuesday, June 18, 2013

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.

The case known as the Bajo de Mina concession, an authorization for the use of hydroelectric power, has been since the middle of last decade in a legal battle which could end up before the CIADIS, a World Bank arbitration court.

On June 13, the law firm King & Spalding, based in Texas, United States, on behalf of the company Transglobal Panama Green Energy, a subsidiary of American Transglobal Green Energy, sent a letter to the Presidency of the Republic which provided an update for the Panamanian government of the situation. In the letter the company lawyers have given until June 24 to "find an amicable solution" before beginning the arbitration process

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The Center for Settlement of Investment Disputes has started arbitration proceedings in which Panama could end up paying up to $2.5 billion.

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.

Panama: Ownership of Hydroelectric Plant Still In Dispute

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The project in question is reaching 97% completion but it is still unclear how the dispute over its ownership between the original and new concession holder (Mexican born Carlos Slim) will be resolved.

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