Prime
ICSID tribunal formed to hear Aqua Power's $500m claim against Tanzania
What you need to know:
- Aqua Power seeks $500 million (over Sh1.3 trillion) for lost business over the past four years and for the value of its current projects in Tanzania.
Dar es Salaam. An International Centre for Settlement of Investment Disputes (ICSID) tribunal has been constituted to address claims filed by Mauritius-based company, Aqua Power Tanzania Limited against the Tanzanian government over a power generation project, The Citizen has learnt
The tribunal was officially established on January 6, 2025, with Jan Paulsson appointed as the chair.
Mr Paulsson, a renowned figure in international arbitration, will be joined by Brooks Daly, the former Deputy Secretary General and Principal Legal Counsel of the Permanent Court of Arbitration (PCA), who was appointed by the claimants, and Makhdoom Ali Khan, who was appointed by the respondent, Tanzania.
The claimants are represented by the legal team at Dentons in Port Louis, Mauritius, while Tanzania has enlisted government counsel to handle the dispute.
In this arbitration, Aqua Power seeks $500 million (over Sh1.3 trillion) for lost business over the past four years and for the value of its current projects in Tanzania.
This amount could be the largest claimed by any company that has previously sued Tanzania regarding investment disputes.
In its arbitration application and notice of dispute served to the government, Aqua Power alleges that Tanzania, through various coordinating authorities and other entities, has repeatedly violated the Bilateral Investment Treaty (BIT) it entered into with Mauritius.
The company claims the government has issued discriminatory directives, denied its licenses and permits, and restricted access to natural gas resources for its operations.
Aqua Power explains that it was invited by the Dangote Group to invest in energy by constructing a gas power plant for electricity generation.
Based on that agreement, Aqua Power asserts it built a 45-megawatt power plant in Mtwara, registered with the Tanzania Investment Centre (TIC), and invested $50 million (Sh135 billion).
However, it claims the government denied it the license to generate and sell electricity, instead granting the license solely to Dangote, despite Aqua Power being the plant's owner and without just cause.
Additionally, Aqua Power asserts that the Tanzania Petroleum Development Corporation (TPDC) refused to sell raw materials, specifically natural gas, for its operations without valid reasons.
The company claims Tanzania is facilitating the appropriation of its resources for CSI Energy Group (Tanzania) Limited without any compensation to the rightful owners.
