Disclosure Details:
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On 19 November 2020, arbitration proceedings were commenced against Phnom Penh SEZ Plc (“PPSP”) by Asiatic Group (Holdings) Limited (“AGH”) through its subsidiaries, Colben System Pte Ltd (“Colben”) and Colben Energy Holdings (PPSEZ) Limited (“CEZH”), in relation to a dispute over a joint venture agreement between Colben and PPSP pertaining to a power plant project within the Phnom Penh Special Economic Zone (“PPSEZ”). The power plant project concerns a company, Colben Energy (Cambodia) PPSEZ Limited (“CEZ”), which has been granted the exclusive right to distribute and generate electricity. PPSP owns 23% of CEZ while AGH owns 77% of CEZ through Colben and CEZH. In the main, AGH (through Colben and CEZH) alleges that PPSP had instigated or otherwise procured the Electricity Authority of Cambodia (“EAC”) to issue a decision dated 30 June 2020, requiring CEZ to revise electricity tariff rates for the PPSEZ downward, as well as to offer PPSEZ customers a choice between purchasing electricity with a back-up power option and purchasing electricity without a back-up power option. AGH claims that it will suffer losses resulting from the EAC’s decision which PPSP is liable for. PPSP refutes AGH’s allegations in entirety and will take all necessary steps to vigorously defend against these baseless claims. The EAC is an independent regulatory body which has directed several revisions of electricity tariffs in the past, consistent with (among others) Prakas #40 dated 14 January 2020 issued by the Ministry of Mines and Energy which requires the implementation of the Plan for Reducing Pricing of selling electricity to consumers and plan or reforming PAYMENT OF ELECTRICITY PRICES OF CONSUMERS for 2020 and 2021. PPSP does not have any control over the EAC’s decision. PPSP is presently considering its options and will keep shareholders fully informed on its next steps over the coming weeks, insofar as this is consistent with its obligations of confidentiality in relation to the arbitration. As mentioned above, investors and the public are well informed. |
