Panama Ports Company says it has submitted claim for arbitration in compliance with rules of International Chamber of Commerce
A subsidiary of Hong Kong conglomerate CK Hutchison Holdings is seeking US$2 billion in damages from the Panamanian government over what it described as the “illegal takeover” of the operations of two ports at either end of the strategic canal.
In a statement issued on Friday, the Panama Ports Company (PPC) said it had submitted the claim for arbitration against the country under the rules of the International Chamber of Commerce, vowing it would not “relent” or seek “token relief” for the damages it was owed.
Panamanian authorities wrested control of the Balboa and Cristobal ports in February following a ruling by the country’s top court that declared the law approving the concession held by PPC unconstitutional.
The concession was renewed in 2021 for a further 25 years until 2047.
“As PPC has advised in prior statements, the conduct of the Panamanian state is inconsistent with applicable law, contract and treaty rights,” the company said.
PPC and CK Hutchison “will not relent and they are not coming for some token relief – they will assert all of their rights and damages they are due because of the radical breaches and anti-investor conduct of the Panamanian state,” the statement said.
PPC clarified that it was seeking US$2 billion in damages and accused Panamanian authorities of misreporting the figure to the media.
Source: News - South China Morning Post
