KUALA LUMPUR (Nov 14): The High Court here has granted Tenaga Nasional Bhd (KL:TENAGA) or TNB permission to enforce a RM73.41 million arbitration award against China's Sinohydro Corp Ltd and its Malaysian unit Sinohydro Corp (M) Sdn Bhd over performance failures at a power plant project in Selangor.

Judicial Commissioner Rajesh Raghavi ruled in favour of TNB’s bid to enforce the arbitration tribunal award and dismissed both Sinohydro companies’ applications to set it aside, saying the challenge amounted to “an appeal in disguise” against the tribunal’s findings.

The arbitration stemmed from Sinohydro’s construction of a power plant at Connaught Bridge that allegedly failed to meet the guaranteed net heat rate, which is a contractual performance benchmark that measures plant efficiency.

TNB initiated arbitration on March 3, 2021, followed by Sinohydro on April 9. The Asian International Arbitration Centre issued its final award on March 28 last year, ordering the companies to pay TNB RM73.41 million, along with RM1.52 million in disbursement costs and RM875,000 in legal fees.

After the award was handed down, TNB sought to enforce it under Section 38(1) of Malaysia’s Arbitration Act 2005, while Sinohydro applied to have it set aside. Both applications were heard on Sept 18.

The court also ordered both Sinohydro companies to pay RM35,000 in costs for the failed set-aside attempt and a further RM5,000 for their unsuccessful bid to stay enforcement of the award.

TNB was represented by Sanjay Mohan, Adam Lee and Hadiputera Mohd Dzulrila of Messrs Sanjay Mohan. Sinohydro was represented by Chan Sock Mun, Teo Lee Hoon and Toh An Ni of Messrs Cherie Chan & Co.