Hydrochem wins $16 million in arbitration over Salalah dispute

Sepco III of China has been ordered to pay $16 million to Hydrochem in relation to disputes arising out of an engineering and procurement contract on Salalah Independent Power and Water Project, Oman.

The award relates to a notice of arbitration issued in 2015

The award relates to a notice of arbitration issued in 2015

The dispute relates to a contract dated 28 August 2009 for the development, design and manufacture of desalination units for the project. The arbitration was brought by Hydrochem, a wholly owned subsidiary of Hyflux.

Salalah IPWP was awarded to a joint venture of Sembcorp Industries and Oman Investment Corporation, in 2009.

Sepco III of China was the engineering, procurement and construction contractor, and Hydrochem, a Hyflux subsidiary, was the sub-contractor for the seawater desalination plants.

A separate ruling on interest and costs will follow.


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