AES-Telasi Intends to Appeal London Court of International Arbitration

(Tbilisi. February 27, 2003. Civil Georgia) – US company AES-Telasi, which distributes electricity in Georgian capital Tbilisi, intends to appeal the London Court of International Arbitration.

US company accuses Georgian government in violation of the provisions of the contract with AES.

“We want to defend our rights and we will use all the legal means,” Ignacio Iribarren, General Manager of AES-Telasi said at the news briefing today. 

The company protests against delay of hand over of several energy facilities to the AES that is considered by the contract between the company and the Georgian government.

AES-Telasi also wants to cancel the tax, which the company pays for the compensation of the natural losses of energy during transmission through the power lines.

“Our lawyers work to find out other violations of the contract,” Ignacio Iribarren said.

Relations between the US company and the Georgian authorities became tensed after the Constitutional Court ruled positively on Georgian Labor Party’s appeal to reduce electricity tax.

AES-Telasi protested against the decision claiming reduction of tax would damage company’s business in Georgia.

However Ignacio Iribarren says that the company’s decision to appeal the London Court is not connected with the electricity tax reduction.

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