ISLAMABAD: In a goodwill gesture, the top management of K. Electric has withdrawn its main conditions of Principle of Reciprocity and arbitration through London Court from its draft terms of reference (ToRs) to resolve once for all the decade old disputes over receivables and payables between the K.E and the government entities. The shareholders of K. Electric from Kuwait, Dubai and Saudi Arabia have also given the nod to the top management to remove the clause of Principle of Reciprocity and agree to the local arbitration mainly on the demand of the government paving the way to resolve the historic dispute over receivables and payables, a senior official at Ministry of Energy confirmed to The News.
“Once the local arbitration resolves the long standing issue of K E’s receivables and payables, then the process to offload 66.40 percent stakes of M/s Abraaj in KE to Chinese electricity giant, Shanghai Electric Power pending since 2016 will be completed.” The official said that the government had suggested to the K. Electric in a meeting held on January 25 to first withdraw its conditions of Principle of Reciprocity and arbitration through London court and agree to local arbitration, then the issue of
their receivables and payables will be resolved amicably.
This was disclosed in a letter of K. Electric’s letter of Feb 1, 2021 to secretary Power Division Ali Raza Bhutta. It mentions that the K.E management has decided to update the draft ToRs in line with guidance of secretary power division and agreed to removal of ‘Principle of Reciprocity’ and agree to arbitration in Pakistan rather than in London.
The officials said that the unresolved dispute had also resulted in delays in the sale of K-Electric to the Chinese electricity giant, Shanghai Electric Power pending since 2016.
