Vol. 5 Num 491 Wed. October 12, 2005  
Front Page

Lahmeyer sues RPCL for compensation

Lahmeyer International Palli Power Services Limited (LIPPS) has sued Rural Power Company Limited (RPCL) in an international court, seeking Tk 320 crore in compensation, sources concerned said.

They said the German company, LIPSS, filed the case with an arbitration court in Singapore against the RPCL for "illegally" cancelling the operational agreement of Mymensingh Power Plant.

The RPCL was informed about this yesterday.

Sources at the RPCL said Surman and Starling Ltd, the legal consultant of LIPSS, has opted for an arbitrator.

If the RPCL agrees to accept the arbitrator, it has to inform within 10 days. If not, the RPCL can go for another arbitrator, the sources said.

The LIPSS has asked for 1.63 crore euro and 11.04 crore taka for cancelling the contract while 13.78 lakh euro and 11.04 crore taka for arrears and other outstanding.