Adani Energy has initiated worldwide arbitration to resolve a dispute with Bangladesh over energy provide funds, Reuters reported.
“There are disagreements in the way in which sure value parts are calculated and billed. Therefore, each companions have agreed to invoke the dispute decision course of and are assured of a fast, clean and mutually helpful decision,” an Adani Group spokesperson instructed Reuters.
The dispute facilities round funds for electrical energy equipped underneath a 2017 settlement between Adani Energy and Bangladesh Energy Growth Board.
Adani Energy operates a 1,600 MW coal-fired plant in Godda, japanese India, which provides practically 10% of Bangladesh’s electrical energy wants.
Bangladesh’s interim authorities had earlier accused Adani of breaching the facility buy settlement by withholding tax advantages granted to the Godda plant by India, Reuters reported in December.
The 2 sides have been locked in a dispute over how sure value elements underneath the facility buy settlement are calculated and billed.
Final week, Adani stated its excellent dues from Bangladesh had dropped sharply — to the equal of 15 days’ tariff — from round $900 million in Might and practically $2 billion earlier this yr.
“Adani Energy reaffirms its dedication to the PPA and can proceed to assist Bangladesh by supplying dependable, cost-competitive and high-quality energy,” the corporate stated.
Bangladesh’s de-facto energy minister Muhammad Fouzul Kabir Khan confirmed that negotiations are ongoing. “As soon as that course of is over, we are going to transfer towards worldwide arbitration, if wanted,” he instructed Reuters.
