GAR has recently reported on an arbitration involving a treaty claim over a frustrated project to build four power plants in the Naryn region of Kyrgyzstan. RusHydro, a Russian state-owned hydroelectric company, and a Kyrgyz state entity formed a joint venture in 2012 to build the four hydroelectric plants. The joint venture was funded by RusHydro, with the Kyrgyz partner providing the land for the plants.
The project was predicted to take six years but in the end it was never implemented, and the Kyrgyz side terminated the agreement with RusHydro in 2016.
A Hong Kong-seated, UNCITRAL tribunal ordered Kyrgyzstan to pay damages to RusHydro for funds it had invested in the Upper Naryn project, through loans issued to the joint venture.
The proceeding was administered by the Permanent Court of Arbitration.
Tribunal
Judge Peter Tomka (Slovakia) (president)
Stanimir Alexandrov (Bulgaria) (appointed by RusHydro)
Christopher Thomas QC (UK) (appointed by Kyrgyzstan)
Click here to read the detailed report by Global Arbitration Review.