Energy Clash: Sinolam vs Panama - Arbitration Drama Unfolds

Sinolam International, an energy developer from Singapore, has initiated arbitration against Panama due to the annulment of its gas-fired power plant license. This legal move is aligned with the Panama-Singapore Free Trade Agreement. The case follows a $4 billion lawsuit against AES Corp and adds to Panama's international legal challenges.

Sinolam International, an energy developer based in Singapore, has launched arbitration proceedings against Panama, citing the abrupt cancellation of its gas-fired power generation license as the cause.

The arbitration, rooted in the Panama-Singapore Free Trade Agreement, represents the latest legal action in a complex international dispute over energy projects.

This development adds to the mounting legal issues Panama faces internationally, alongside a separate $4 billion lawsuit and an ongoing arbitration with Hong Kong's CK Hutchison Holdings.

(With inputs from agencies.)