Egypt’s Damietta Port Authority slapped USD 494 mn fine in DIPICO dispute
DISPUTE WATCH- Damietta Port Authority slapped USD 494 mn fine in DIPCO dispute: The International Court of Arbitration (ICC) has ordered the Damietta Port Authority (DPA) to pay over USD 494 mn to the Damietta International Ports Company (DIPCO) in a five-year-old contract termination dispute, the Kuwait and Gulf Link Transport (KGL) company said in a Kuwaiti exchange filing (pdf). KGL owns a 25% stake in DIPCO. DPA will also be required to pay debt service on other fines, according to the ruling.
An appeal is in the works: Law firm Sarie ElDin & Partners, which is representing DPA, plans to appeal the decision, government sources told Al Mal.
Decision is unfair, say former gov’t officials: Former senior government officials cited by Al Mal said that the decision was surprising, and that the DPA is the party entitled to compensation, not vice versa. DIPCO was awarded in 2006 a contract to build a container terminal in the port. In 2015, then Prime Minister Sherif Ismail annulled the contract, alleging DIPCO’s failure to stick to the agreed time frame.