China Intel Info Sys (IICN)

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[color=red][/color]Czech company threatens Kyrgyzstan with arbitration over hydro deal

PRAGUE, Sept 19 (Reuters) - The Czech company Liglass Trading CZ threatened Kyrgyzstan with arbitration if its government pulls out of contracts for 12 hydroelectric power plants without seeking a solution to a pay dispute.

The central Asian nation annulled the contracts late on Monday, saying the Czech contractor failed to make a $37 million payment on time, part of a deal struck in June and July .

One of the deals included a provision that Liglass would pay Kyrgyzstan the amount it needs to pay Russia – its previous partner in the project - for work already carried out on the plants. The $37 million was that payment.

Liglass said on Tuesday its agreement with Kyrgyzstan included clauses requiring a three-month period to settle contract disputes, as well as other procedures to handle disagreements.

“If the government of Kyrgyzstan, in violation of article 7 of the investment agreement, sends a notice of withdrawal ... Liglass Trading CZ will be forced to turn to international arbitration,” Liglass said in a statement.

https://uk.reuters.com/article/kyrgyzstan-czech-hydro/czech-company-threatens-kyrgyzstan-with-arbitration-over-hydro-deal-idUKL5N1M047M