Will Laos break precedent by obeying arbitration award to Thai-Lao Lignite Co?
Play
Your story “Laos seals Malaysia energy deal” (September 30) cites “a senior Lao official” and says “Laos has agreed to sell 100 megawatts (MW) of electricity to Malaysia via Thailand’s power grid in a trade deal signed this week by the involved parties”, and says “the exported power also included electricity generated by the Hongsa lignite power plant”.
The Hongsa lignite power plant is 20-per-cent owned by the Lao government’s Lao Holding State Enterprise.
This Malaysia-Lao government-to-government deal regarding Hongsa has interesting timing because only one month before, on August 17, the Malaysian High Court ruled a $57-million damages award in favour of the original developer of the Hongsa project, the Nganthavee’s Thai-Lao Lignite Company Limited. One law firm’s website remarks that “there has been no public record of any foreign arbitration award which has successfully obtained certification from the Lao PDR Peoples’ Court”. http://arionlegal.la/arbitration-in-lao-pdr/
Thai-Lao Lignite Company Limited
