Attorney General of Pakistan, Ashtar Ausaf has claimed that the International Centre for Settlement of Investment Disputes (ICSID) has accepted Pakistan’s evidence against the international firm over the terminated Reko Diq mining contract.
However, the AG added that ICSID had refused Pakistan’s appeal to drop financial claims of $400m by the Tethyan Copper Company (TCC) over the termination of a multimillion dollar mining lease in Balochistan, saying that the case would proceed.
Pakistan had adopted the plea that the agreement/mining licence at Reko Diq was procured through corrupt means and therefore TCC cannot claim damages.
The tribunal took up the dispute between after TCC’s application was rejected by the Mining Authority of Balochistan. In September 2015, Pakistan filed an application asking the tribunal to disregard claims by TCC on grounds of corruption and put forth detailed evidence of corrupt practices by TCC with regards to its investment in the project.
The AG explained that the recent ICSID order was not a final order but happens to be a part of a series of orders issued at the end of each phase of the hearing.
This order brings to an end the “corruption” phase and it will now proceed with the “quantum” phase. TCC will now present its case for the value of compensation it seeks for terminating the licence.
Pakistan will rigorously contest any amount claimed by the claimant, AG said, adding that the final liability, if any, would be determined at the end of quantum phase.
Pakistan has the right to challenge the rationality and enforceability of any order passed by ICSID tribunal, the AG concluded.
