Commencement of Final Hearing Against Bolivia

RNS Number : 2328B

Rurelec PLC

02 April 2013

 



2nd April 2013

Rurelec PLC

("Rurelec" or "the Company")

Commencement Of Final Hearing Against Bolivia

Rurelec PLC, (AIM:RUR) the electricity utility which owns and operates power generation capacity in Latin America, announces the commencement today of the final hearing of its ongoing arbitration against the Plurinational State of Bolivia ("Bolivia") commenced on 24 November 2010 pursuant to the UK-Bolivia investment treaty.

The arbitration will determine the value of compensation due to Rurelec for the expropriation of its controlling share stake in Empresa Guaracachi SA ("Guaracachi") and other associated assets. The Arbitration is administered by the Permanent Court of Arbitration (PCA) under the arbitration rules of the United Nations Committee on International Trade Law (UNCITRAL). The value of the claim for the expropriation of its controlling share stake in Guaracachi and other associated assets has been assessed by its independent valuation experts at US $142.3 million.

The parties agreed to transparency relating to documents filed in the arbitration process and hearings, the audio record of which will be published. Details of the claim together with transcripts of the final arbitration hearing will be posted on the PCA and Rurelec websites: www.rurelec.com and www.pca-cpa.org. Shareholders in Rurelec will be able to access the transcripts as they are posted each day of the hearing.

The parties are bound by the decision of the arbitration tribunal, which is not appealable on the merits.

Speaking today, Peter Earl, Chief Executive of Rurelec, said: "I am pleased to report that the arbitration process is now nearing its end as we continue to seek full compensation for the loss of Guaracachi. We hope that it will now not be long before Bolivia pays the compensation that it owes Rurelec for the nationalization of Guaracachi to enable the Rurelec group to reinvest in replacement power generation assets in Latin America."

For further information please contact:

Peter Earl, CEO, Rurelec PLC Ana Ribeiro, Head of Communications www.rurelec.com	Tel: [phone]
Paul Shackleton, Daniel Stewart & Company Plc	Tel: [phone]
Halimah Hussain/Jon Belliss, XCAP Securities	Tel: [phone]

 

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