CK Hutchison seeks US$1.5 billion from Panama in treaty dispute arbitration
The company logo of CK Hutchison Holdings is displayed at a news conference in Hong Kong, China on Mar 17, 2016. (Photo: REUTERS/Bobby Yip)
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CK Hutchison said on Thursday (Aug 20) it had launched international arbitration proceedings against Panama and was seeking damages of more than US$1.5 billion for the “destruction” of its investments in the Central American nation.
The conglomerate said Panama breached an investment protection treaty after a series of measures over the past two years that culminated in the “destruction of the concession contract for the ports of Balboa and Cristóbal and takeover of the port terminals”.
“The board strongly disagrees with the measures taken by Panama in violation of the treaty,” the Hong Kong-based conglomerate said.
Panama’s economy ministry and presidency did not immediately respond to a Reuters request for comment.
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Owned by Hong Kong’s richest man, Li Ka-shing, CK Hutchison has been caught in a diplomatic tussle since US President Donald Trump objected to Chinese ownership of ports along the Panama Canal, followed by Panama’s cancellation of its port concessions in the country.
The legal fight has complicated the group’s plan to sell dozens of ports worldwide, including the Panamanian terminals, to a consortium including BlackRock, Mediterranean Shipping Company and another strategic investor that sources identified as China’s COSCO.
CK Hutchison’s subsidiary, Panama Ports Company (PPC), will continue pursuing its separate international arbitration proceedings, launched in February after the country’s top court annulled its licences to operate two Panama Canal ports.
PPC, which for nearly three decades operated the Balboa and Cristobal terminals near the Panama Canal, in March widened its claims to more than $2 billion over what it described as the state’s illegal takeover of two port terminals and company property.
Source: Reuters/ec
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