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    CFE claims a payment of $190 million dollars from Iberdrola in an international arbitration.

    May 12, 2022 - CE Noticias Financieras


      The state-owned CFE is claiming a payment of 190.2 million dollars from Spain's Iberdrola within an international arbitration process opened by the private company last year. The process, which dates back to last March, has Topolobampo III, a combined cycle power plant awarded to Iberdrola in 2017 to provide electricity to the national utility, at the center of the dispute. The construction of the plant has already been completed, but it has not entered into operations because the Spanish company has not received the necessary documents for commercial operation tests, sources explained a few months ago to Expansión . Iberdrola's report does not mention whether the payment to the CFE could imply the start-up of the natural gas plant. The CFE conditioned the start-up of the plant located in Sinaloa to the payment of a fine of 16 million dollars. Iberdrola, which decided to escalate the judicial process, is asking the state company to recognize that the power plant has not come into operation due to "force majeure" and that the state company declare the penalty it decided to impose as incorrect.

      But now, the state-owned company has answered the arbitration claim and has filed a counterclaim -which could be explained as a counterclaim process- and has asked the Spanish company for a payment of 185.5 million dollars for claiming damages and 4.7 million dollars for not having reached the percentage of national integration, according to an Iberdrola report. "The CFE has opposed Iberdrola's claims and has filed a counterclaim in the arbitration," the text reads. The document gives no further explanation of the state-owned company's claims. The national integration demanded by the CFE can be understood as the requirement that a percentage of the labor and components of the assets be of national origin. In the process, Iberdrola has also requested the return of US$2 million it paid as penalties and a payment of US$10 million for expenses incurred and for indemnification of damages. The state-owned company and Iberdrola were consulted, but declined to comment. The arbitrations are part of the contracts signed by this type of companies, as part of the dispute resolution processes of the T-MEC and so far it is the only one that has been made public between the two companies that have maintained a tense relationship since the beginning of the six-year term. The Spanish company, the dominant private electricity generator in the country, has become the main target of presidential attacks against the electricity industry.


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