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Transfield / Pacific Hydro reach $90m partial resolution

Luzon Hydro Corporation (LHC), a 50% owned associate of Pacific Hydro, has achieved a partial res...

The dispute was (and is) the subject of commercial arbitration, with Transfield claiming around $US45 million while Luzon Hydro is seeking $US90 million, although the arbitral tribunal has now delivered a partial award.

Luzon Hydro has been largely successful in its claims arising out of the design and construction of the project. However the tribunal has also found that Transfield is entitled to extensions of time and, subject to quantification, certain acceleration costs.

The partial award did not deal with damages and as a result, the final outcome of the dispute is currently unknown and subject to further determination by the Tribunal.

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