BEM May Appeal after the Court Revokes ฿209m Compensation in the Dispute with EXAT

On September 20, 2019, Bangkok Expressway and Metro Public Company Limited (BEM) has made an announcement to the fact that the Arbitral Tribunal rendered its Arbitral award dated on December 20, 2013 requiring the Expressway Authority of Thailand (EXAT) to compensate for construction costs and expenses caused by EXAT’s issuance of three variation orders in the amount of 209.1 million baht together with interest under the agreement to BEM, which the company submitted a statement of claim to enforce the Arbitral award and EXAT submitted a petition to the Administrative Court requesting the Court to revoke the Arbitral award.

In this regard, on September 19, 2019, the Central Administrative Court had ruled to revoke and dismiss the Arbitral award mentioned above. Bt the results of the Court’s judgment, the Arbitral award dated on December 20, 2013 shall have no legally binding the EXAT. However, BEM may file an appeal to the Central Administrative court within 30 days from the date of the Court’s sentence.

In addition, this dispute is part of the negotiation for settlement with the EXAT which the Extraordinary General Meeting of Shareholder No. 1/2019 on March 18, 2019 approved BEM and the subsidiary to settle the disputes with the EXAT. It is pending to the EXAT proceedings according to the procedures to the cabinet for approval.