International Tribunal Allows US$680 million Investment Claim Against Dominican Government to Proceed to Final Hearing
By natalie • Oct 6th, 2008 • Category: Arbitration, International Arbitration •
Print This Post
LOS ANGELES, Oct 06, 2008 (BUSINESS WIRE) — An arbitration tribunal constituted under the France-Dominican Republic Bilateral Investment Treaty released an award last week ruling on the jurisdictional objections raised by the Dominican Republic in a claim brought by TCW and its parent company. The claim involves an investment in EDE ESTE, an electric distribution company in the Dominican Republic that serves approximately 600,000 customers and has 1,200 employees. The tribunal rejected the objections raised by the Dominican Government and allowed US$680 million in claims against the Republic to proceed to a final hearing and an award on the merits of the dispute.
R. Blair Thomas, President of EDE ESTE and Group Managing Director of TCW, said: “We are extremely pleased that the tribunal convincingly rejected the Government’s position. This arbitration proceeding goes to the heart of the problems affecting the Dominican electric sector and the unstable legal and regulatory framework. By holding the Government accountable we hope to finally advance the prospect of having a reliable and efficient electric sector for our customers.”
On March 15, 2007, TCW and its parent company initiated an arbitration under the bilateral treaty to resolve its allegations that the Republic’s treatment of the investment in EDE ESTE has greatly diminished the value of EDE ESTE. The Republic raised objections to the jurisdiction of the tribunal to hear the claims under the Treaty. The Tribunal’s decision rejected these objections and now the arbitration will proceed to a final hearing in 2009.
TCW and parent company Societe Generale have consented to the Dominican Republic to make the full award public, but the Dominican Republic has not yet responded. Under the applicable arbitration rules, the award may be made public only with the consent of both parties.
About TCW
Founded in 1971, The TCW Group develops and manages a broad range of innovative, value-added investment products that strive to enhance and protect clients’ wealth. The firm has approximately $130 billion in assets under management. TCW clients include many of the largest corporate and public pension plans, financial institutions, endowments and foundations in the U.S., as well as a substantial number of foreign investors and high net worth individuals. TCW is a subsidiary of Societe Generale Asset Management, which has approximately $500 billion under management.
TCW’s Energy & Infrastructure Group is one of the leading providers of institutional capital to the energy sector globally with assets under management of approximately $7 billion and capital invested in more than 250 energy projects and companies in 27 countries. The Group has a 26-year track record in the industry and operates from offices in Los Angeles, Houston, New York, London and Sydney.
SOURCE: The TCW Group, Inc.
The TCW Group, Inc. Michael Utley Vice President, Media Relations 213-244-0975 michael.utley@tcw.com
natalie is
Email this author | All posts by natalie