Business Services Industry

Expropriation by 2 countries is alleged.

Business Insurance, November, 1998 by Kielmas, Maria

Pakistan, Indonesia criticized MARIA KIELMAS Political risk insurers could face potentially huge claims following government actions in Pakistan and Indonesia that insurers and brokers say are tantamount to expropriation. Foreign investors in power utility projects in the two countries have seen their power purchase agreements suspended or threatened with cancellation, which could result in billions of dollars in losses.

In Pakistan, the government is waging an acrimonious battle with foreign investors, known as independent power producers. The government has threatened to cancel 21 power producers' electricity contracts unless they reduce their rates, which Pakistani officials charge were inflated due to corruption in the previous government of Benazir...

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