ICSID Tribunal Constituted in Sinolam v. Panama $140 Million Gas Project Arbitration
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TL;DR
- ICSID has constituted an arbitral tribunal to address Sinolam International's claim against Panama.
- Sinolam seeks over $140 million following cancellation of the Gas to Power Panama project licenses.
- The dispute concerns alleged expropriation and treaty violations after Panama revoked power generation permits.
- The Ministry of Economy and Finance (MEF) will lead Panama's defense in the arbitration.
Overview
The International Centre for Settlement of Investment Disputes (ICSID) has constituted an arbitral tribunal to adjudicate the case between Sinolam International Pte. Ltd., a Singaporean investor, and the Republic of Panama. The dispute arises from Panama's cancellation of licenses for the planned Gas to Power Panama project in Colón, with Sinolam seeking more than $140 million in compensation.
What Happened
On June 8, 2026, ICSID finalized the formation of the arbitral panel for the case registered as ARB/26/12, which centers on the cancellation of the 441 MW Gas to Power Panama project in Colón province.
Sinolam International claims that Panama's revocation of its project licenses in 2024 constituted expropriation without compensation and a breach of fair and equitable treatment under the Panama-Singapore Free Trade Agreement.
The arbitral tribunal comprises Joseph Tirado (UK-Spain) as president, Lluís Paradell Trius (Spain, nominated by Sinolam), and Antolín Fernández Antuñá (Spain, appointed by Panama's Ministry of Economy and Finance).
Panama, represented by the MEF, is expected to present its defense, arguing that the license withdrawal was based on regulatory grounds rather than expropriation.
Context
Sinolam International is a Singapore-based investor whose project aimed to build a combined-cycle gas plant in Puerto Pilón, Colón.
In addition to the ICSID arbitration, Sinolam affiliates have filed a separate civil lawsuit in Virginia, United States, seeking over $4 billion from AES Corp. and InterEnergy Holdings, alleging anticompetitive conduct and abuse of dominance in the LNG sector. However, the ICSID case focuses only on Panama's actions regarding the revoked licenses.
Why It Matters
- The constitution of the tribunal marks the start of formal arbitration proceedings at ICSID over a significant energy project dispute.
- The outcome could impact Panama's obligations under its investment treaties and influence international investor-state dispute resolutions involving the energy sector.