Enron tribunal gives ruling in Bechtel’s favour

The action was taken by Energy Enterprises (Mauritius) Company, a Bechtel affiliate that owns 10 per cent of the $3 billion Dabhol power plant.

Maharashtra, through Maharashtra Power Development Corporation, holds a 14 per cent share in DPC and Capital India Power Mauritius I (CIPMI), a General Electric affiliate, holds a 10 per cent share in DPC.

MSEB officials said the arbitration tribunal’s order is not executable in India as Bechtel has been prohibited by the Bombay High Court by pursuing such arbitration at the ICC arbitration tribunal.

‘‘During the arbitration proceedings under consideration, MSEB and its arm Maharashtra Power Development Corporation (MPDCL), were not present and thus it is an ex parte judgement sought by Bechtel,’’ the official said.

But the panel said Maharashtra and its agencies have conducted a campaign to avoid their obligations under the Power Purchase Agreement (PPA) and related project agreements for Dabhol. ‘‘They have played a key role in blocking DPC and its shareholders from pursuing international arbitration to defend their legal rights,’’ said Steve Dixon, Vice President of Bechtel Enterprises.

‘‘Their willful misconduct is a clear violation of our shareholder agreement and we are gratified that the tribunal has agreed with us.’’

The tribunal found that Maharashtra breached provisions of DPC project agreements and by these actions totally expropriated Bechtel’s original investment in the project and deprived it of its fundamental rights.

‘‘Maharashtra launched a new strategy with the aim, and, ultimately the effect of disabling DPC itself from pursuing its remedies. The attack came in the form of a series of internal corporate manoeuvers plainly undertaken as a matter of policy by the state and MSEB, although necessarily carried out by their designee-shareholder, MPDCL,’’ it said.