Arbitral Digest

Matter

PSEG Global Inc. and Konya Ilgin Elektrik Uretim ve Ticaret Limited Sirketi v. Republic of Turkey (ICSID Case No. ARB/02/5)

PSEG's treaty dispute with Turkey over the Konya Ilgın coal-fired power project, with claims concerning negotiations, regulatory changes and investment costs.

  • Jurisdiction and arbitration agreements
Case no.
ARB/02/5
Seat
United States
Industry type
Electricity, gas, steam and air conditioning supply
Applicable rules
ICSID Arbitration Rules · ICSID Institution Rules

Procedural record

  1. 4 June 2004United States

    4 June 2004United States

    Decision on Jurisdiction dated 4 June 2004

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal held that the dispute submitted by PSEG Global Inc. and Konya Ilgin Elektrik Uretim ve Ticaret Limited Sirketi fell within the jurisdiction of the Centre and the competence of the Tribunal, while the dispute submitted by The North American Coal Corporation did not. Costs of the jurisdictional phase were reserved.

    Participants

    PSEG Global Inc.
    Representative
    Carolyn B. Lamm (For: PSEG Global Inc.)
    Representative
    Abby Cohen Smutny (For: PSEG Global Inc.)
    Representative
    Lee A. Steven (For: PSEG Global Inc.)
    Representative
    Mesut Cakmak (For: PSEG Global Inc.)
    Representative
    Tugba Bayman Keskin (For: PSEG Global Inc.)
    The North American Coal Corporation
    Konya Ilgin Elektrik Uretim ve Ticaret Limited Sirketi
    Republic of Turkey
    Representative
    Daniel M. Price (For: Republic of Turkey)
    Representative
    Stanimir A. Alexandrov (For: Republic of Turkey)
    Representative
    Samuel B. Boxerman (For: Republic of Turkey)
    Representative
    Stephen M. Schwebel (For: Republic of Turkey)
    Representative
    Serdar Paksoy (For: Republic of Turkey)
    International Centre for Settlement of Investment Disputes
    Arbitrator
    Francisco Orrego Vicuna
    Arbitrator
    L. Yves Fortier
    Arbitrator
    Gabrielle Kaufmann-Kohler
    Tribunal secretary
    Ucheora Onwuamaegbu
    Other
    Expert
    Rudolf Dolzer

    Authorities cited

    6
    • Treaty between the United States of America and the Republic of Turkey Concerning the Reciprocal Encouragement and Protection of Investments (United States-Turkey Bilateral Investment Treaty, signed 3 December 1985, entered into force 18 May 1990)
      statute
    • Convention on the Settlement of Investment Disputes Between States and Nationals of Other States (ICSID Convention (1965))
      statute
    • Turkish Law No. 3096
      statute
    • Turkish Law No. 3996
      statute
    • Turkish Law No. 4501
      statute
    • Enron Corporation and Ponderosa Assets, L.P. v. Argentine Republic (ICSID Case No. ARB/01/3, Decision on Jurisdiction, 14 January 2004)
      case-law

    2 years, 7 months and 15 days later · 959 days

  2. 19 January 2007United States

    19 January 2007United States

    Award dated 19 January 2007

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal found that Turkey breached the obligation to accord PSEG Global fair and equitable treatment. It awarded PSEG Global US$9,061,479.34 plus interest, allocated 65% of the arbitration costs and legal costs and fees to Turkey and 35% to the Claimants, and dismissed the remaining claims.

    Participants

    PSEG Global Inc.
    Representative
    Carolyn B. Lamm (For: PSEG Global Inc.)
    Representative
    Abby Cohen Smutny (For: PSEG Global Inc.)
    Representative
    Francis A. Vasquez Jr. (For: PSEG Global Inc.)
    Representative
    Lee A. Steven (For: PSEG Global Inc.)
    The North American Coal Corporation
    Konya Ilgin Elektrik Uretim ve Ticaret Limited Sirketi
    Republic of Turkey
    Representative
    Daniel M. Price (For: Republic of Turkey)
    Representative
    Stanimir A. Alexandrov (For: Republic of Turkey)
    Representative
    Samuel B. Boxerman (For: Republic of Turkey)
    Representative
    Stephen M. Schwebel (For: Republic of Turkey)
    Representative
    Serdar Paksoy (For: Republic of Turkey)
    International Centre for Settlement of Investment Disputes
    Arbitrator
    Francisco Orrego Vicuna
    Arbitrator
    L. Yves Fortier
    Arbitrator
    Gabrielle Kaufmann-Kohler
    Tribunal secretary
    Ucheora Onwuamaegbu
    Other
    Expert
    Michael Rosenzweig
    Expert
    Carlos Lapuerta
    Expert
    Faruk Sabuncu
    Expert
    Rene Stulz

    Authorities cited

    6
    • Treaty between the United States of America and the Republic of Turkey Concerning the Reciprocal Encouragement and Protection of Investments (United States-Turkey Bilateral Investment Treaty, signed 3 December 1985, entered into force 18 May 1990)
      statute
    • Convention on the Settlement of Investment Disputes Between States and Nationals of Other States (ICSID Convention (1965))
      statute
    • Turkish Law No. 4501
      statute
    • UNIDROIT Principles of International Commercial Contracts (1994)
      academic
    • Azurix Corporation v. The Argentine Republic (ICSID Case No. ARB/01/12, Award, 14 July 2006)
      case-law
    • Autopista Concesionada de Venezuela, C.A. v. Bolivarian Republic of Venezuela (ICSID Case No. ARB/00/5, Award, 23 September 2003)
      case-law

Matter record

Report a correction

PSEG Global Inc. and Konya Ilgin Elektrik Uretim ve Ticaret Limited Sirketi v. Republic of Turkey (ICSID Case No. ARB/02/5) · Matter