An international arbitration tribunal has ordered the Ethiopian Railway Corporation (ERC) to pay Turkish construction company Yapı Merkezi $213.7 million in damages in a long-running dispute over the suspended Awash–Kombolcha–Woldiya–Hara Gebeya railway project.

The tribunal also ordered the repayment of $29.1 million in advance payments, bringing the total amount identified in the ruling to about $242.8 million, according to information obtained by Capital.

The dispute, which was heard in London under proceedings administered by the London Court of International Arbitration (LCIA), stems from disagreements over the performance of a contract awarded to Yapı Merkezi by the ERC in 2015 to construct the 392-kilometre railway line at an estimated cost of $1.7 billion.

Yapı Merkezi had reportedly sought more than $1 billion in compensation from the Ethiopian government, claiming losses incurred during the implementation of the project.

In response, the Ethiopian Railway Corporation filed a counterclaim seeking approximately $400 million in compensation, according to information obtained by Capital.

A senior ERC official, who requested anonymity, said the arbitration proceedings were concluded on September 23, 2026.

According to the ruling, the damages awarded to Yapı Merkezi included $67.4 million in unpaid amounts owed by the ERC, $76.7 million in compensation related to construction delays, and $89.2 million for damage to the company’s assets during the conflict in northern Ethiopia.

The award also provides for interest at an annual rate of nine percent. Separately, Yapı Merkezi was ordered to repay $29.1 million in advance payments to the Ethiopian side.

Yapı Merkezi had also brought claims against Ethiopia’s Ministry of Finance and Ministry of Transport and Logistics. However, the tribunal reportedly dismissed the claims against the two ministries.

The ruling is also expected to prevent Ethiopian government assets abroad from being used as security for enforcement of the award.

In addition, the tribunal ordered Yapı Merkezi to hand over vehicles and machinery used in the construction of the railway project to the Ethiopian Railway Corporation.

The dispute involved several issues, including delays in the construction of the railway, payment-related disagreements and damage to Yapı Merkezi’s equipment and assets during the war in northern Ethiopia.

Ethiopia’s defence before the tribunal was handled in London by a team of legal, financial and engineering experts, including representatives from the Ethiopian Railway Corporation and the Ministry of Justice. The team was led by Professor Tilahun Teshome, a law professor at Addis Ababa University.

The ERC said negotiations were held in Istanbul and Addis Ababa in an attempt to settle the dispute before a final arbitration ruling was issued. However, the negotiations failed to produce an agreement.

In a separate statement, Yapı Merkezi presented a different calculation of the outcome, saying it had secured a net arbitral award of $307.6 million in its dispute with the Ethiopian Railway Corporation.

The Turkish contractor said the final award was issued on September 23, 2026, under proceedings administered by the LCIA, and was formally communicated to both parties on October 2.

According to Yapı Merkezi, the tribunal determined that the company was entitled to $307.6 million after taking into account counterclaims submitted by the ERC. The company said the amount was calculated as of June 30, 2026.

Yapı Merkezi added that the award provides for simple interest at an annual rate of nine percent on the outstanding principal until the amount is fully paid.

The parties reportedly have 28 days from the issuance of the decision to challenge the award. However, sources familiar with the matter told Capital that neither the Ethiopian Railway Corporation nor Yapı Merkezi currently intends to appeal the decision.

Ethiopia’s newly appointed federal caretaker administration in Tigray has outlined a six-month agenda focused on restoring peace, rebuilding infrastructure, resuming public services, and preparing the region for democratic elections.

Over its six-month mandate, the temporary administration will oversee Tigray’s political transition, guide security restructuring, coordinate regional reconstruction, and facilitate the return of internally displaced persons (IDPs) to their communities.

Restoring peace, stability, and public order remains the top priority, alongside rebuilding local and regional governance institutions disrupted by conflict. The administration is tasked with urgent repairs to damaged infrastructure and restoring interrupted social services, ensuring residents regain access to health, education, and essential utilities.

Facilitating the safe, voluntary return of IDPs to their places of origin is central to the regional recovery plan, serving as a critical prerequisite for long-term social and economic stability.

Under the outline, the administration will reorganize Tigray’s security apparatus in close coordination with federal defense, police, and intelligence agencies, alongside regional forces. This effort aims to reinforce security from the regional to the local level while overseeing the comprehensive disarmament, demobilization, and reintegration (DDR) of former combatants into civilian life.

Politically, the interim government is charged with creating an environment conducive to free, fair, and transparent elections within the six-month timeframe. To support this transition, the administration will coordinate media operations, host public consultative forums across administrative tiers, and address the psychosocial impacts of the conflict to foster community-led reconstruction.

The newly appointed officials include Assefa Abreha Hagos, Chief Executive Officer for Administration and Public Services; Dr. Tewodros Aregai Woldeselassie, Chief Executive Officer for Economy and Reconstruction; Brigadier General Gebre-Egziabher Beyene Hailu, Chief Executive Officer for Security and Peace; Redai Halefom Woldeselassie, Chief Executive Officer for Politics and Public Organization; and Dr. Shishay Amare, Mayor of Mekelle City.

Pakistan has formally urged Ethiopia to accelerate regulatory approvals for Pakistani pharmaceutical companies, placing pending product registrations and manufacturing plant inspections at the center of recent bilateral trade negotiations aimed at unlocking access to the East African market.

During a high-level meeting in Islamabad, Federal Minister for Commerce Jam Kamal Khan called on Ethiopian officials to address administrative delays that continue to hinder Pakistani exporters seeking entry into Ethiopia.

Minister Khan emphasized that predictable timetables, clear regulatory guidelines, and transparent procedures are essential for building commercial confidence among Pakistani exporters. He noted that securing true market access requires seamless coordination between regulatory agencies, trade officials, and diplomatic channels—rather than simply identifying potential buyers or negotiating preliminary commercial understandings.

The Ethiopian Ambassador stated that he has directly engaged Ethiopian health authorities regarding the backlog of pharmaceutical registrations and received positive assurances that the issues would be addressed. However, officials clarified that these envoy-level assurances do not signify immediate product approvals or facility clearances, which remain subject to formal review by the Ethiopian Food and Drug Authority (EFDA).

To accelerate the process, Commerce Secretary Jawad Paul called for the swift scheduling of an Ethiopian technical delegation to visit Pakistan. The delegation would conduct on-site facility inspections and evaluate manufacturing standards—a required technical milestone for advancing outstanding registration applications. No official timetable or list of approved companies has yet been finalized.

Ethiopia’s regulatory framework requires pharmaceutical manufacturers to undergo rigorous evaluation before products can enter the market. The EFDA mandates that local agents demonstrate strong technical competency and a thorough understanding of submission procedures, yet applicants frequently make errors that lead to applications being returned or rejected before scientific assessment begins.

Ethiopian investors seeking to buy shares in Dangote Oil Refinery Company must have a minimum net worth of 10 million birr, excluding the value of one vehicle and one primary residential property, according to the Ethiopian Capital Market Authority (ECMA). The regulator has restricted the offering to qualified investors, with retail buyers excluded from the Ethiopian participation route.

Each share is priced at approximately 74.9 birr, with the offering remaining open until October 27, 2026. However, ECMA has capped participation at 100 qualified investors unless it grants prior approval for a higher number. Interested investors must also conduct all transactions through legally licensed securities trading entities, which are required to verify and document each buyer’s eligibility.

The share sale forms part of Dangote Refinery’s effort to raise approximately $1.6 billion through an initial public offering of 4.1 billion new shares. The company plans to use the proceeds to finance an expansion programme intended to double its crude oil processing capacity from about 700,000 barrels per day to 1.4 million barrels per day by 2029 Located in Nigeria’s Lekki Free Zone, the refinery is Africa’s largest oil-processing facility. The expansion is expected to strengthen its position in the continental petroleum industry and increase its capacity to supply refined products to regional and international markets.

The offering comes as Dangote Refinery reports strong financial performance. Figures disclosed for the offering indicate that the company generated approximately $13.6 billion in revenue and recorded a profit of around $1.78 billion during the first half of 2026.

Despite the company’s scale and recent results, ECMA cautioned that its approval should not be interpreted as an endorsement of the refinery or the investment’s merits. Prospective investors remain responsible for reviewing the offering documents and assessing the risks, which include volatility in international crude oil prices, foreign exchange movements, regulatory and policy changes, competition in the petroleum sector, and possible delays in executing the expansion programme.

The Ethiopian conditions mean that, although Dangote has positioned the IPO as a pan-African opportunity, Ethiopian participation remains limited to a small group of wealthy individuals and institutional investors rather than the general public.