SINOLAM COMMENCES ICSID ARBITRATION AGAINST PANAMA OVER CANCELLATION OF STRATEGIC POWER PROJECT

Actions Violate Panama-Singapore Free Trade Agreement

SINGAPORE, March 19, 2026 /PRNewswire/ -- Sinolam International Pte Ltd filed a request for arbitration under the ICSID Convention against the Republic of Panama in connection with cancellation of a license for a major gas-fired power generation project. The arbitration arises under the Panama-Singapore Free Trade Agreement.

The International Centre for Settlement of Investment Disputes (ICSID) is an international arbitration institution established in 1966 for legal dispute resolution and conciliation between international investors and States. ICSID is part of the World Bank Group, headquartered in Washington, D.C.

The project, known as Gas to Power Panama, was designed to deliver reliable, efficient, and lower-emission electricity to support Panama's growing energy needs. It involved development of a modern combined-cycle, gas-fired power plant, initially planned as a 325 MW facility and later expanded to 441 MW. Designed to operate with high thermal efficiency and flexible dispatch capability, the project was intended to stabilize the Panamanian grid, respond to demand fluctuations, and complement other sources of generation.

Sinolam made substantial investments to advance the project and prepare it for construction and operation, with the expectation it would contribute meaningfully to Panama's electricity supply and system stability.

Despite this, Panama abruptly cancelled the project's license through regulatory action taken in 2024. The cancellation was issued without prior notice that termination was under consideration and without affording Sinolam opportunity to be heard. Panama's conduct violated fundamental obligations under the applicable investment treaty, including protection against arbitrary and discriminatory treatment and uncompensated expropriation. Sinolam seeks full compensation for the losses it has suffered, including invested capital and destruction of the project's value. Sinolam presently values its loss at over $140 million.

"After serious efforts to reach an amicable resolution, Sinolam has initiated arbitration proceedings under the Panama-Singapore Free Trade Agreement. This is a last resort to protect our lawful investment and uphold the principles of transparency, fairness, and respect for international commitments that underpin cross-border investment. This step reflects our confidence in a rules-based process," said Kenneth Zhang, Sinolam's CEO.

In the past 30 months, the Government of Panama has cancelled several major foreign investment concessions owned by Asian companies valued at billions of dollars as well as a large Canadian-owned copper mine. This has eroded the trust of foreign investors in Panama.

Sinolam remains committed to resolving the dispute through the ICSID arbitration process and looks forward to vindicating its rights.

About Sinolam International Pte. Ltd (Singapore)
Sinolam International Pte. Ltd is a Singapore-based investment company focused on oil & gas and power investments in emerging markets in Asia and Latin America.

About Sinolam (Panama)
Sinolam LNG Terminal, S.A. and Sinolam Smarter Energy LNG Power Co. are energy infrastructure developers focused on LNG-to-power solutions in emerging markets. Sinolam's projects are designed to provide reliable, lower-emission electricity while expanding access to competitively priced natural gas in Panama and the region.

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SOURCE Sinolam Smarter Energy