US Court 6 Billion USD Reko Diq – Dr Attaulwadood – Eagle Eye – DN
By Dr Attaulwadood
TCC Proceeds Towards a US Court for the Enforcement of 6 Billion USD award in Reko Diq Case.
TCC has proceeded towards a court in the United States of America for the enforcement of 6 billion USD in a penalty imposed on Pakistan last month by the International Centre for Settlement of Investment Disputes in Reko Diq goldmines case.
In the previous month of July, TCC won the award against Pakistan of almost 6 billion USD when an ICSID tribunal – chaired by Germany’s Klaus Sachs, including Bulgarian arbitrator Stanimir Alexandrov and the UK’s Lord Hoffmann – ordered Pakistan to pay just over 4 billion USD in damages to the Tethyan Copper Company, plus 1.7 billion USD in pre-award interest.
This penalty of 6 billion USD was imposed on Pakistan after the ICSID tribunal found out that Pakistan had committed an unlawful expropriation under the Australia-Pakistan bilateral investment treaty and had unlawfully denied TCC a lease to mine copper and gold deposits at the Reko Diq gold mine.
The tribunal also declared the judgment of the 2012’s Supreme Court of Pakistan’s case of Rental Power Projects (RPPs) as ‘arbitrary’. According to the Global Arbitration Review report, the TCC filed a petition in the court on 9th of August and the 622-page final award and earlier decisions in the case are now made public after being filed as exhibits in the US court.
About the Reko Diq Case
It all started in 2006 when the Tethyan Copper Company entered into an agreement with Balochistan. To develop Reko Diq, on the basis of what it said assurances from the federal and provincial governments. However, later in 2012, the Supreme Court of Pakistan declared the agreement void, ousting the TCC from the project.
In the upcoming events, the TCC approached the ICSID case. Which held a combined 32 hearings of the case in the cities of London, Hong Kong, and Paris. In the subsequent seven years. Pakistan made repeated efforts to have the TCC’s claims thrown out on the grounds on the basis that the investment was tainted by corruption.
The state alleged that TCC and its predecessor BHP had paid a subsequent amount of bribes. In relation to the project. Furthermore, it also offered an expert opinion. By US arbitrator and former president of the International Court of Justice Stephen Myron Schwebel in relation to its arguments on the TCC’s ‘unclean hands’.
Among the many allegations, Pakistan said public officials had provided with all-expenses-paid trips. To Canada and Chile with unnecessary stopovers in Rio de Janeiro, New York, London, and Nice. It said the TCC had considered bribing an official with the offer of a house in Islamabad and a BMW car.
The GAR report stated that the TCC denied the corruption allegations. Which, it said, a cynical attempt by the government of Pakistan to rescue its hopeless position. Moreover In the arbitration. Moreover, the report continued by saying that the TCC using Gibson Dunn & Crutcher. For the enforcement action, having used Debevoise & Plimpton in the arbitration.
The TCC’s proposed order seeks entry of judgment for 4.09 billion USD. Plus interest understood to at least 1.7 billion USD and 62 million USD in costs. Moreover This award is going to the second largest in ICSID’s history. Beaten only by the US$8.7 billion awarded to US oil company Conoco Phillips. In its claim against Venezuela over the expropriation of assets in the Orinoco Belt.
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