Statement by Bechtel on Dabhol Settlement

12 July 2005

Statement by Bechtel on Dabhol Settlement


In exchange for $160 million in compensation for its equity and contractor claims, Bechtel agreed to forgo international arbitration over the expropriation of its investment. A portion of this financial settlement was subject to Indian taxation.

Bechtel took steps to convey its original 10 percent interest in Dabhol Power Company (DPC) to Newage Power Company Private Ltd., an Indian entity.
Bechtel and the relevant Indian parties agreed to cooperate to terminate all other legal actions in the Dabhol case. These include contempt citations against Maharashtra Power Development Corporation, Ltd. (MPDCL) and against a Bechtel affiliate and several directors.  Bechtel will also lift its orders to attach MPDCL's shares in DPC and other assets.

Bechtel is very grateful that high-level representatives of the Indian government played a particularly constructive role in facilitating this agreement, allowing the Dabhol project to help meet the critical energy needs of Maharashtra's growing economy.

Finally, Bechtel is fully prepared to assist in the restart and completion of the facility. We will provide all our design drawings and construction records and make our team available should the new owners request such help.
 

About Bechtel

Bechtel is a trusted engineering, construction and project management partner to industry and government. Differentiated by the quality of our people and our relentless drive to deliver the most successful outcomes, we align our capabilities to our customers’ objectives to create a lasting positive impact. Since 1898, we have helped customers complete more than 25,000 projects in 160 countries on all seven continents that have created jobs, grown economies, improved the resiliency of the world's infrastructure, increased access to energy, resources, and vital services, and made the world a safer, cleaner place.  

Bechtel serves the Infrastructure; Nuclear, Security & Environmental; Oil, Gas & Chemicals; and Mining & Metals markets. Our services span from initial planning and investment, through start-up and operations. www.bechtel.com

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