By JIGGSLAW®. Duro Felguera has won against the Electrical Federal Commission (EFC) an arbitration case related to the “Empalme II” combined-cycle power plant in the Sonora region. The Spanish company will receive $22 million for the breaching of the 2015 construction contract.
The Spanish company Duro Felguera reported on its report of “Abbreviated Consolidated Financial Intermediary States and Interim Management Report for Six Months ended 30 June 2022”, the conclusion of its arbitration case against the Mexican Electrical Federal Commission (EFC) related to a 2015 contract granted by the “Empalme II” combined-cycle power plant in the Sonora region.
According to the document dated September 26, 2022, an Arbitral Tribunal appointed by the London Court of International Arbitration (LCIA) found that EFC breached the Empalme II construction agreement and ordered it to pay Dunor (composed of Duro Felguera and Elecnor) $20.76 million plus taxes as well as the post-award interests.
Due to a lack of jurisdiction, the Tribunal rejected the EFC counterclaim and ordered that each party bear its own legal costs as well as 50 % of the administrative fees and expenses. Furthermore, an additional payment of $I.1 million was ordered once Dunor confirmed payment of such an amount to subcontractors.
Empalme II Project
In 2015, a consortium composed of Elecnor and Duro Felguera was awarded a contract worth nearly 350 million euros to build the “Empalme II” combined-cycle power plant in Sonora, Mexico, to supply electricity to this region.
