AKIPRESS.COM - A World Bank arbitration panel Wednesday dismissed a $567 million claim brought by a private Turkish company against Turkmenistan alleging major construction projects were stalled by government interference in breach of a bilateral investment treaty, saying the firm didn’t show government officials impermissibly intervened, reports Law360.com.

In its 175-page ruling, the three-member tribunal dismissed Ickale Insaat Limited Sirketi’s claims and ordered the Turkish construction company to pay the prevailing party, Turkmenistan, more than $1.7 million in legal fees and expenses.

“The claimants claims are dismissed in their entirety for lack of merit,” the arbitration panel wrote.

The dispute stemmed from 13 construction contracts that Ickale, which bills itself as one of the leading civil construction companies in Turkey, entered into with various entities of the Turkmenistan government between 2004 and 2009. The contracted projects included a canal, a hotel, schools and a cinema.

Ickale claimed it was unable to finish the projects due to government interference that resulted in increases to the scope of some projects without additional compensation and changing financial terms, among other concerns. Additionally, the government abolished the financing mechanism for the projects, the State Fund for the Development of the Oil and Gas Industry and Mineral Resources, the company claimed.

As a result, some of the contracts were terminated without valid justification, unfair penalties were imposed, judicial proceedings were initiated against the construction company without its participation, and machinery and equipment were confiscated, the company said in its complaint.

Ickale sought more than $567 million in compensation and losses it said it sustained as a result of Turkmenistan’s conduct, including $475.3 million for “consequential damages, loss of reputation, goodwill, creditworthiness and business opportunities.”

Ickale submitted its request for arbitration to the World Bank’s International Centre For Settlement of Investment Disputes in November 2010.