Summary

The First Claimant ("CTT") is a Mozambique corporation and was the employer in respect of a project for the design, construction, and operation of a 450 MW combined-cycle power plant fuelled by natural gas at Temane, Mozambique ("Project"). Companies in the TSK Group were the onshore and offshore contractors in respect of the Project. CTT and entities in the TSK Group entered into an EPC (Engineering, Procurement and Construction) contract ("EPC Contract")and a Co-ordination Agreement ("Coordination Agreement") pursuant to which two Bonds were issued by the Defendant-bank ("Santander") at the request of its customer, TSK Electrónica y Electricidad, S.A. (Spain) (and together with TSK Moçambique Limitada (Mozambique), "TSK") (part of the TSK Group), in order to secure aspects of the EPC Contract ("the Bonds"). The Bonds consist of an Advance Payment Bond and a Performance Bond, each originally dated 2 December 2021, and each in favour of CTT as beneficiary. ... On 3 April 2025 TSK issued a notice purporting to terminate the EPC Contract by reason of a natural and prolonged force majeure event (tropical storm Filipo which lasted more than 180 days). This was disputed by CTT which led to the commencement by TSK of an arbitration on 15 May 2025, seated in London ("the EPC arbitration").