Summary

A recent arbitration decision has awarded GE and Bechtel over USD 57 million under an OPIC political risk insurance policy for expropriation of their equity in the USD 3 billion Dabhol power project in India. OPIC is now entitled under the US-India Investment Incentives Agreement to recover that sum directly from the Government of India. The expropriation holding, and the right of OPIC under international law to recover from India, may fundamentally alter the positions of the various parties in the long-running Dabhol dispute.