Brattle Client Obtains Damage Award of $383 Million in Commercial Arbitration Concerning Georgian Hydropower Plant

In a commercial arbitration concerning the termination of a hydropower plant project in Georgia, a Brattle team provided analyses and Principal Richard Caldwell testified on behalf of ENKA Renewables, a subsidiary of the major Turkish engineering group ENKA. ENKA recently disclosed that an International Chamber of Commerce (ICC) tribunal had determined that the company had rightfully terminated the contract, securing an award of over US$383 million.

Brattle was retained by Skadden, Arps, Slate, Meagher & Flom to assess the fair market value of the project at termination and ENKA Renewables’s economic incentives. Led by Principal Richard Caldwell, the Brattle team conducted valuation analyses, including electricity market modeling to forecast long-term electricity prices and the development of an analytical framework to account for pre-operational risks. The Brattle team concluded that the project retained substantial fair market value at termination and that ongoing development remained beneficial to ENKA. Mr. Caldwell testified at an ICC hearing in March 2024.

In November 2024, the ICC released its decision, with the tribunal ruling that ENKA Renewables rightfully terminated the contract and that the project had substantial fair market value. The tribunal ordered the Georgian government to pay ENKA Renewables US$383.2 million in compensation.