Kalpataru Power clarifies on winning arbitration award of $32M against Rwanda Energy Group

There is no announcement or price sensitive information which is pending to be intimated/furnished by the Company.

Sep 27, 2021 09:09 IST India Infoline News Service

Kalpataru Power Transmission Ltd has clarified to the exchange regarding news item appearing in "Media/Publication" captioned "Kalpataru Power wins arbitration award of $32 million against Rwanda Energy Group."

The company confirmed the reported news item and stated that the said event is not material as per the Company's Policy and hence the same is not required to be reported under the Listing Regulations.

However, in order to provide complete information in the interest of various stakeholders, the company has submitted the key facts of the matter as under:
  • The Company entered into a Contract for the design, engineering, supply, construction, installation and commissioning of 220 kV power Transmission Lines interconnecting the Democratic Republic of the Congo and Rwanda ("the Project").
  • The Project was physically completed in March, 2017. The Operation Acceptance Certificate was issued on May 24, 2017 with the date of operational acceptance being May 04, 2017.
  • In February 2016, the Company raised invoices on client for Price Adjustment, in accordance with the terms of the contract, which was disputed by the client.
  • The Company initiated dispute resolution process with the Disputes Adjudication Board ("DAB") as prescribed under the contract. The DAB comprised of independent members duly appointed by the President of International Federation of Consulting Engineers (FIDIC), Geneva, Switzerland, held that the Company was entitled to the price adjustment. The client then challenged the claim adjudicated in favour of the Company under dispute resolution by initiating arbitration as per UNCITRAL Rules.
  • The Arbitral Tribunal was comprised of three members. one each appointed by the Company and the Client and the presiding member was appointed by both the other members of the Tribunal. The seat of the Arbitral Tribunal was in Rwanda.
  • The Arbitral Tribunal unanimously gave an award dated August 28, 2021, communicated to parties through email on August 31, 2021 in favour of the Company awarding the price adjustment claim, legal costs and pre-award interest. The Arbitral Tribunal is in process of rectifying certain typographical errors in the order, based on an application made by the Company; however, these errors do not have any material impact on the matter.
Further, there is no announcement or price sensitive information which is pending to be intimated/furnished by the Company to the Stock Exchanges, said Kalpataru Power in a regulatory filing.

At around 9:58 AM, Kalpataru Power Transmission was trading at Rs396 apiece down by Rs3.3 or 0.83% on Sensex.

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