What is the SIAC arbitration process guiding the BPDB-Adani dispute?
As India's Adani Power Limited moves to file a case against the Bangladesh Power Development Board (BPDB) over power purchase and coal pricing disputes, the conflict will be resolved through the Singapore International Arbitration Centre (SIAC), a system designed for cross-border commercial conflicts.
Under this process, both sides first nominate neutral mediators from a third country, as per international arbitration.
If that mediation fails, the matter will escalate to a full arbitration process, starting with a Notice of Arbitration.
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An impartial Arbitral Tribunal will then examine evidence and conduct hearings – a process that could take months or years.
The ruling is legally binding and enforceable under the New York Convention of 1959, which allows arbitration awards to be recognised in over 160 countries.
Ahsanul Karim, senior advocate of the Supreme Court, said Bangladesh's past experience with international arbitration has been disappointing, with the country losing most cases attributed to the poor choices in appointing arbitrators.
"We often engage individuals based on nepotism rather than merit. Many are not judicious enough to defend the country's interests effectively," Karim said.
He stressed that the government must act prudently when selecting arbitrators by carefully examining candidates' past portfolios, especially their track records in winning cases.
He suggested Bangladesh should explore out-of-court settlements before entering lengthy legal battles.
