Global Power Synergy Public Company Limited (SET: GPSC), a majority shareholder of GHECO-One Company Limited (GHECO-One), has announced that GHECO-One, which owns and operates a 660 MW coal-fired power plant under Thailand’s Independent Power Producer (IPP) Programme, received a Request for Arbitration from the International Chamber of Commerce on June 14, 2023.
The Claimant submitting the Request for Arbitration is AVRA International DMCC, which is a supplier of coal to GHECO-One under Coal Supply and Transportation Agreements dated 28 September 2021 and 29 July 2022 (collectively, the CSTAs). The Claimant alleges that GHECO-One has breached the CSTAs by cancelling purchases of shipments of coal under the CSTAs, as a result of which it has suffered damages of approximately USD 309 million.
GHECO-One’s position is that it is entitled under the terms of the CSTAs to cancel shipments of coal where there is a decrease in its coal requirements due to a reduction in the dispatch of its power plant by the Electricity Generating Authority of Thailand. Currently, GHECO-One is preparing its defense to the claims asserted in the Request for Arbitration.
