The Royal Government of the Kingdom of Cambodia is pleased to announce that the claims brought by Cambodia Power Company have been dismissed in their entirety by an arbitral tribunal established under the auspices of the International Center for the Settlement of Investment Disputes (ICSID). Cambodia Power Company is the project company of Beacon Hill Associates Inc., a corporation from Delaware in the United States.
Cambodia Power Company claimed that the Kingdom of Cambodia and Electricite du Cambodge (EDC) had breached the agreements signed in 1996 with Beacon Hill Associates Inc., for the financing, construction and operation of a 60MW electric power plant in Phnom Penh and claimed damages of nearly US$300 million from the Royal Government of Cambodia and EDC.
EDC was originally named as a Respondent to the arbitration but the ICSID tribunal held that it did not have jurisdiction over EDC. The claims then proceeded against the Kingdom of Cambodia alone.
After a hearing in Paris in September 2012, the ICSID tribunal rendered its award on 22 April 2013. The award held that the Kingdom of Cambodia did not breach the agreements directly or indirectly through the actions of EDC and dismissed all of the claims brought against the Kingdom of Cambodia. The ICSID tribunal further ordered Cambodia Power Company to pay the Kingdom of Cambodia over US$5.6 million for legal costs and expenses in arbitration and costs of all relevant proceedings for almost the last four years.
The Kingdom of Cambodia and EDC were represented by a team from Freshfields Bruckhaus Deringer LLP in Paris led by partner Peter Turner and by Billie Jean Slott of Sciaroni & Associates in Phnom Penh. The Chief Coordinator of EDC and the Royal Government of Cambodia team was led by H.E. Keo Rottanak, the Royal Government of Cambodia Delegate in charge of Managing EDC.
The Royal Government of Cambodia is very pleased to see that justice has been done and is proud of the excellent work done by our legal team and of our full commitment to the rule of law according to the international standards.
For further information please contact Mr. Peter Turner and H.E. Keo Rottanak.
Phnom Penh 26 April 2013