Sembcorp’s India wind unit proceeds with arbitration over 300 MW wind project contract

GIWEL filed a S$134.1m statement of claim against Siemens Gamesa Renewable Power Private Limited.

Sembcorp Industries announced that its wholly-owned Indian subsidiary Green Infra Wind Energy Limited (GIWEL) will kick off arbitration proceedings with Siemens Gamesa Renewable Power Private Limited.

It involves disputes arising from GIWEL terminating a contract to supply and build a 300 MW wind power project consisting of 143 wind turbine generators and associated transmission facilities. The termination came “following various defaults on the part of [Siemens Gamesa],” Sembcorp said in a statement posted at the Singapore Exchange.

Following termination, GIWEL filed a statement of claim against Siemens Gamesa for approximately S$134.1m (Rs.8.16b) during its financial year ending 31 March.

In defence, Siemens Gamesa filed a statement of defence and a counterclaim for approximately S$321.7m.

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Sembcorp said that Siemens Gamesa’s counterclaims lacked merit, that described its probability of success against GIWEL as “remote.”

“Therefore, no provision was made,” Sembcorp said, based on external legal advice noting that it has reviewed the relevant information related to the arbitration.

GIWEL echoed this sentiment. “GIWEL and its legal advisors have assessed the underlying disputes in the arbitration and concluded, based on the present information available, that the counterclaims by the vendor lacked merit and that GIWEL is in a strong position to defend the arbitration against the vendor,” the statement read.

On 15 May, the arbitral tribunal had agreed upon the issues relating to claims to be determined by way of the arbitration.