{"id":132068,"date":"2026-02-20T23:15:35","date_gmt":"2026-02-20T19:15:35","guid":{"rendered":"https:\/\/tiflisnews.ge\/?p=132068"},"modified":"2026-02-20T23:15:35","modified_gmt":"2026-02-20T19:15:35","slug":"paris-court-of-appeal-terminates-payment-to-enka-renewables-llc-by-georgian-government-until-final-verdict","status":"publish","type":"post","link":"https:\/\/tiflisnews.ge\/en\/paris-court-of-appeal-terminates-payment-to-enka-renewables-llc-by-georgian-government-until-final-verdict\/","title":{"rendered":"Paris Court of Appeal terminates payment to Enka Renewables LLC by Georgian government until final verdict"},"content":{"rendered":"<p>In a significant decision for international arbitration in France, in Namakhvani Hydro Electric Power Plant case, the Paris Court of Appeal\u00a0<a href=\"https:\/\/www.globalarbitrationnews.com\/2026\/02\/13\/paris-court-of-appeal-confirms-exequatur-of-icc-award-while-staying-enforcement-to-protect-a-partys-rights-of-a-party\/?fbclid=IwY2xjawQFOH5leHRuA2FlbQIxMABicmlkETJlNjVrRkJyZk9iZnhKT2U0c3J0YwZhcHBfaWQQMjIyMDM5MTc4ODIwMDg5MgABHlAn6wrpPsVdEdW3u9n_NsrMc8i3T0yJNws6PuEbS1yJKrWGr6xyjJjakmBf_aem_r2w1nHlU-lFKZp7kre7BRw\">confirmed<\/a>\u00a0the termination of USD 400 million by the Georgian government in favor of Enka Renewables LLC until the final verdict.<\/p>\n<p>The case has to do with a USD 800 million Namakhvani hydropower project for which the Georgian government and\u00a0Enka Renewables LLC concluded a BOO (Build\u2013Own\u2013Operate) Agreement\u00a0in 2019.<\/p>\n<p>According to the decision of the Paris Court of Appeal, large\u2011scale protests by local communities and environmental groups disrupted the project, and Enka terminated the BOO Agreement in 2021, invoking force majeure and Georgia\u2019s alleged events of default.<\/p>\n<p>In 2022, Enka initiated ICC arbitration seeking compensation for termination and the value of transferred assets.<\/p>\n<p>On 13 November 2024,\u00a0the arbitral tribunal rendered a final award, followed by an addendum dated 6 January 2025,\u00a0holding that the termination was and ordering Georgia to pay approximately 400 million USD.<\/p>\n<p>The Georgian government submitted three requests to the Paris court: annulment of the decision, refusal of the enforcement permit, and suspension of payment. Enka Company requested the enforcement permit.<\/p>\n<p>The Court first examined whether the award fulfilled the conditions for exequatur under Article 1514 CPC. Georgia argued that the award violated international public policy, claiming that the tribunal had relied on a \u201cFinancial Model\u201d annexed to the record without ensuring adversarial debate. The Court recalled the narrow scope of its review under Article 1514 CPC. Only a manifest breach of international public policy, apparent from the face of the award, can justify refusing exequatur. After examining the award, the Court did not find such a breach. The Court confirmed that the existence of annulment proceedings did not influence the granting of exequatur, which is assessed autonomously under Article 1514 CPC.<\/p>\n<p>Having granted exequatur, the Court then examined Georgia\u2019s request for a stay of enforcement under Article 1526. Georgia argued that immediate enforcement of a USD 400 million award would gravely affect essential public budgets, representing 60% of the national defence budget and around 250% of the Ministry of Justice\u2019s annual allocation.<\/p>\n<p>The Court accepted this evidence as demonstrating a serious and concrete impact on Georgia\u2019s ability to meet vital public functions.<\/p>\n<p>The Court also noted that Enka was a special\u2011purpose project company created solely for the Namakhvani project and no longer carrying any business activities or holding significant assets.<\/p>\n<p>In the Court\u2019s view, this increased the risk that sums paid in enforcement might not be recoverable should the award ultimately be annulled. These combined factors constituted a grave infringement of Georgia\u2019s rights, justifying a suspension of enforcement.<\/p>\n<p>The Court therefore ordered a stay of enforcement of the award and its addendum until the decision on the annulment application is rendered.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a significant decision for international arbitration in France, in Namakhvani Hydro Electric Power Plant case, the Paris Court of Appeal\u00a0confirmed\u00a0the termination of USD 400 million by the Georgian government in favor of Enka Renewables LLC until the final verdict. The case has to do with a USD 800 million Namakhvani hydropower project for which [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":132033,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[171,169],"tags":[],"class_list":{"0":"post-132068","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economics","8":"category-news-of-the-day"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Paris Court of Appeal terminates payment to Enka Renewables LLC by Georgian government until final verdict - TiflisNews.ge<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/tiflisnews.ge\/en\/paris-court-of-appeal-terminates-payment-to-enka-renewables-llc-by-georgian-government-until-final-verdict\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Paris Court of Appeal terminates payment to Enka Renewables LLC by Georgian government until final verdict - TiflisNews.ge\" \/>\n<meta property=\"og:description\" content=\"In a significant decision for international arbitration in France, in Namakhvani Hydro Electric Power Plant case, the Paris Court of Appeal\u00a0confirmed\u00a0the termination of USD 400 million by the Georgian government in favor of Enka Renewables LLC until the final verdict. 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