Quetta: Federal government and Balochistan government can potentially need to pay $11.4 billion in Damages to Tethyan Copper Company Pvt Ltd (TCC) after a favorable ruling in its favor by International Center for Settlement of Investment Disputes (ICSID) in Rekodiq case mine reported Express Tribune.
Earlier, Federal government had warned that Balochistan government alone will have to pay all damages in case of an adverse ruling from international tribunals.
The maximum amount of damages to be paid by Balochistan government, in worst case scenario, will be equal to four times the volume of Balochistan budget of 2017-18 which was Rs. 325 Billion in value.
Maximum amount of damages to be paid by Balochistan government, in worst case scenario, will be equal to four times the volume of Balochistan budget of 2017-18
TCC filed for compensatory damages claim amounting to $9.1 billion on its investment and an additional claim of $2.3 billion as pre-award compound interest when ICSID ruled in favor of TCC on Rekodiq case in March this year.
According to the same report TCC had 75% and Balochistan government had 25% shares in Rekodiq project which has estimated reserves of 11.65 million tons of copper and 21.18 million ounces of gold.
Pakistan has to submit its reply to TCC’s damages claims by July 21.
Balochistan government had set aside Rs. 2 billion in its budget for fiscal year 2017-18 for damages payment of Rekodiq.
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