Adds ICSID filing in paragraph 2, details on different arbitration process in paragraphs 8-10
March 19 (Reuters) - Singapore-based energy developer Sinolam International has filed for arbitration before a World Bank international court against Panama following the cancellation of its license for a gas-fired power generation project, the company said on Thursday.
The International Centre for Settlement of Investment Disputes registered a request for arbitration proceedings on Monday, according to the tribunal's records.
The arbitration is based on the Panama-Singapore Free Trade Agreement, Sinolam added in a release.
The company said it had invested in the project, intended to build and operate a 441-megawatt plant to provide low-emission electricity for Panama, but in 2024, the government unilaterally cancelled the license through regulatory action.
The arbitration request follows a separate $4 billion lawsuit filed this year by Sinolam LNG Terminal and Sinolam Smarter Energy LNG Power in a Virginia court against U.S.-based utility AES Corp AES.N and InterEnergy Holdings.
In its complaint, Sinolam accused AES and its partners of anti-competitive conduct aimed at derailing Sinolam's planned LNG terminal and the gas-fired power project in Colon, Panama.
AES in February said the claim lacked merit and that it was preparing its defense.
The Sinolam case adds to a growing list of international legal challenges for Panama. Hong Kong's CK Hutchison Holdings 0001.HK is also engaged in a high-profile arbitration process against the government over its port concessions on both ends near the Panama Canal.
Panama Ports Company, a unit of CK Hutchison, said on Monday the Panamanian government failed to meet a March 13 deadline to file its response in an international arbitration brought by the company before the International Chamber of Commerce.
PPC said Panama had sought a partial extension, claiming it was not ready to respond because it had not yet hired lawyers.
Panamanian President Jose Raul Mulino on Thursday called the PPC comments "outrageous and a lie," adding that the government has already appointed international lawyers to defend Panama in the process.
(Reporting by Marianna Parraga and Elida Moreno; Writing by Natalia Siniawski, Editing by Sarah Morland, Rod Nickel)
((natalia.siniawski@thomsonreuters.com;))