The state-owned Ethiopian Railways Corporation (ERC) has announced that it has filed a counter-argument to the International Court of Justice, challenging the inflated lawsuit submitted by the contractor for the Awash-Kombolcha-Woldia/Hara Gebya railway infrastructure project.
According to the corporation, the contractor, Yapi Merkezi, a Turkish company, had submitted a compensation claim to the arbitration panel, including various claims raised during the implementation of the project, as well as new claims and those related to the ongoing security crisis in the northern part of the country.
The $1.7 billion, 390-km railway project was commissioned under an international EPC Turnkey Contract in June 2012, with the contract becoming effective on August 7, 2014, following the fulfillment of the necessary implementation conditions.
“The construction of the project was a well-performing project until the construction was stopped due to the security crisis in the northern part of our country,” the ERC stated.
In response to the contractor’s claims, the ERC said it has made “appropriate legal and professional arrangements” and has announced its opposition to the “inflated lawsuit” filed at the International Court of Justice in London, as well as the filing of the “defendant-plaintiff lawsuit against the contractor.”
The corporation explained that the contractor had cited the security problem in the northern region and complaints related to payments as justification to terminate the project contract, which was effective from January 18, 2022.
The ERC further stated that it has submitted the necessary responses, evidence, and arguments to the London International Arbitration Court, where the two parties have been engaged in arbitration proceedings for the past two years.
“Most of the processes of responding, presenting evidence and hearing witnesses have been completed, and the remaining activities are being carried out according to the rules governing the arbitration,” ERC said in a statement.
As a key institution responsible for building modern railway infrastructure and connecting Ethiopia’s economic corridors, the ERC’s counter-argument at the International Court of Justice highlights the corporation’s determination to protect the country’s interests and ensure the successful completion of critical transportation projects.
