UK’s Malicorp to file another arbitration case against Egypt
UK’s Malicorp files new USD 500 mn arbitration suit against Egypt: UK construction firm Malicorp is planning to file another arbitration case against the Civil Aviation Ministry for USD 500 mn in compensation for terminating an 18-year-old contract to build, operate and manage an airport in Ras Sudr, sources close to the matter told a local newspaper.
Background: The concession agreement signed in 2000 was terminated a year later by the Egyptian side, which claimed Malicorp failed to comply with agreed terms. The company claimed the termination was related to national security concerns on the Egyptian side.
ICSID dismisses compensation claim for damages: Malicorp had previously taken the case to the International Centre for Settlement of Investment Disputes (ICSID) (pdf), seeking USD 500 mn in damages, but the international tribunal dismissed the company’s claim for compensation and ordered both parties to share the costs. Malicorp tried to reverse the ICSID’s decision, but failed.
CRCICA agrees modest compensation for expenses: Malicorp then filed for arbitration at the Cairo Regional Centre for International Commercial Arbitration (CRCICA), which ordered Egypt to reimburse the UK company for expenses in the amount of USD 14.8 mn.