Judicial Ruling in NEPCO vs. APCO Arbitration Case Resolves Pricing Disputes
A recent judicial ruling has brought closure to the arbitration case between the National Electric Power Company (NEPCO) and the Jordanian government against the Attarat Power Company (APCO). The case, which began in late 2020, aimed to address concerns over exorbitant pricing in the power purchase agreement (PPA) signed with APCO in 2016.
NEPCO and the Jordanian government opted for international arbitration to seek clarity on the pricing issues in the PPA while keeping the project running. Despite the ruling upholding NEPCO’s claim validity, the tribunal dismissed the case based on a return-on-investment criterion, relieving NEPCO and the government from reimbursing APCO for legal costs.
NEPCO maintained project continuity throughout the arbitration process, emphasizing the importance of dialogue and legal mechanisms in resolving disputes. The ruling ensures NEPCO’s financial stability and adherence to the original project agreements, highlighting the significance of arbitration in maintaining operational consistency and legal certainty.
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