Tanzania faces $500 Million investment dispute from Aqua Power
Media Wire Express
27th September, 2024
By Media Wire Express Correspondent
Tanzania faces $500 Million investment dispute from Aqua Power
In its claim, Aqua Power is demanding $500 million for lost business revenue over the past four years and for the value of its current projects within Tanzania.
The Tanzanian government is grappling with the looming threat of a significant investment dispute, as Aqua Power Tanzania Limited, a Mauritius-registered company, has initiated legal proceedings seeking over $500 million (approximately Sh1.3 trillion) in compensation.
Aqua Power, which is headquartered in Ebene, Mauritius, has lodged its arbitration claim against the Tanzanian government at the International Centre for Settlement of Investment Disputes (ICSID) in Washington, D.C. The company specializes in electricity production using a range of energy sources and alleges that it has experienced discrimination from the Tanzanian authorities, particularly in the form of being denied an investment license for its energy sector initiatives.
In its claim, Aqua Power is demanding $500 million for lost business revenue over the past four years and for the value of its current projects within Tanzania. If successful, this compensation would mark the largest amount ever claimed by any company in a Tanzanian investment dispute.
Documents reviewed by The Citizen indicate that Aqua Power formally submitted its request for arbitration to the Secretary-General of ICSID on September 17, 2024, through its legal counsel, Natasha Paray. This legal action underscores ongoing tensions between foreign investors and the Tanzanian government, particularly regarding regulatory hurdles and investment protections.
