Issue #64: When Premium Meets Electric
Welcome to the latest edition of OIA!
Here are the latest 🌶 headlines in APAC:
China: China initiates WTO action against the US over its latest tariff increase on Chinese products
Ling Yah
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That’s Pricey!
Let’s talk about what could be the first case of state-owned Chinese and Laotian entities facing off in international arbitration.
🍿 What Happened?
Nam Ou Power, a unit of state-owned Power Construction Corp of China, has initiated arbitration proceedings against Laos utility Electricite du Laos (“EdL”) at the Singapore International Arbitration Centre, seeking a staggering USD 555 million in unpaid dues.
The disputed amount stems from electricity generated by the USD 2.73 billion Nam Ou River Cascade Hydropower project (which accounts for 7% of the country's 18 gigawatts of hydropower capacity) between January 2020 and December 2024.
The claim includes USD 486.27 million in principal dues plus interest estimated at USD 65.79 million, along with an additional USD 3.02 million for EdL's failure to make 85% of payments in US dollars as contractually required, instead using the rapidly depreciating Lao kip.
For context: USD 555 million represents approximately 4% of Laos' entire GDP – not an insignificant amount!
👀 Hmm
As Laos grapples with hyperinflation, depleted foreign reserves, and a currency that has lost nearly three-fifths of its value over five years, this is one electricity bill that promises to give Laos a splintering headache!
When Premium Meets Electric
How iconic is the ‘M6’ nameplate?
🍿 What Happened?
On 26 Feb, BMW Group Indonesia filed a lawsuit with the Central Jakarta Commercial Court against Chinese automotive manufacturer BYD.
The point of contention – BYD having the nerve to use the "M6" nameplate on its fully electric MPV.
According to BMW's Director of Communications, Jodie O'tania, the M6 trademark is registered with Indonesia's Directorate General of Intellectual Property and represents a cornerstone of BMW's high-performance lineup.
"The BMW M6 is an iconic model in the BMW M line that is globally recognised for high performance, innovative technology and exclusivity," O'tania stated, adding that BYD's use of the name might confuse consumers about product authenticity and quality.
👀 Hmm
Interestingly, Indonesian trademark law protects famous marks not only for similar goods in one class of goods, but also for non-similar goods or services belonging to different classes of goods or classes of services.
Could this strengthen BMW’s position even though BYD M6 is an electric MPV (as opposed to a high-performance sports car)?
Only time will tell!
Keep The Lights On!
Singapore arbitration has once again proven that even power struggles eventually find their circuit breaker.
🍿 What Happened?
The National Grid Corporation of the Philippines (“NGCP”) emerged victorious in its arbitration case against the Power Sector Assets and Liabilities Management Corp. (“PSALM”) and National Transmission Corp. (“TransCo”) before the Singapore International Arbitration Centre.
At the heart of the controversy was NGCP's ₱ 58 billion prepayment to PSALM in 2013 and allegations that NGCP had violated nationality restrictions applicable to public utilities under Philippine law, particularly the Anti-Dummy Law which limits foreign ownership to 40%.
👀 Ruling
On 19 February, the Arbitral Tribunal declared NGCP's prepayment valid and rejected claims of Anti-Dummy Law violations. PSALM and TransCo were also ordered to reimburse ₱ 56.53 million for right-of-way expenses with interest.
With the clouds of regulatory uncertainty finally dispersed, NGCP can now focus on what it does best - keeping the lights on across the Philippine archipelago.
Spotlight: Nichol Yeo
Nichol Yeo of Nine Yards Chambers is excited for what the future holds.
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