Islamabad: The International Centre for Settlement of Investment Disputes (ICSID) has recently nixed a penalty of EUR 128 million imposed on Spain and this development has boosted the prospects of releasing Pakistan from its USD 6 billion penalty in Reko Diq case, according to news sources.
The monetary penalty on Spain was waived after the arbitrator – Stanimir Alexandrov – was found guilty of ‘conflict of interest’. Alexandrov had also represented the plaintiffs in the case against Pakistan. Following the annulment of the award by the ICSID, Pakistan has again applied for the annulment of a USD 6 billion penalty in Reko Diq case.
Previously, Pakistan’s legal team Allen & Overy LLP had also allied for disqualification of the aforementioned arbitrator from the tribunal, but could not convince the ICSID.
Reko Diq is a small town in Chagai, Balochistan and has the biggest gold and copper reserves in Pakistan – its extraction capacity upon full development can reach 250,000 ounces of gold and copper for 50 years. The centre had concluded in July 2019 that Pakistan violated the Australia-Pakistan bilateral investment treaty by unlawfully terminating the mining lease of Tethyan Copper Company (TCC) in 2011 – by Supreme Court’s orders.
Hazafa reveres the art of writing and has been turned into a property enthusiast by profession. Her daily survival kit includes; tea, coffee, keyboard and paperbacks.
