Coronavirus in Kyrgyzstan Log in  
Turkmenistan|business|May 14, 2021 / 08:46 AM
Turkmenistan wins $500 million claim brought before international arbitration tribual by Turkish construction company

AKIPRESS.COM - The government of Turkmenistan has won $500 million claim brought before the International Centre for Settlement of Investment Disputes by a Turkish construction company, the law firm Squire Patton Boggs said.

The case, Muhammet Çap and Sehil v. Turkmenistan, was registered nine years ago by a Turkish company and its majority shareholder under the Turkey-Turkmenistan bilateral investment treaty. The dispute concerned 32 construction projects in Turkmenistan, including water and waste treatment plants, an iron and steel plant, schools and government buildings.

The claimants alleged they were impeded by delays and defaults by their contractual counterparties and by regulatory procedures, that they were entitled to additional compensation for works outside the scope of the contracts, and that they were unfairly subject to delay penalties, tax audits and court orders terminating the contracts. Their contractual counterparties argued that terminations and penalties were justified due to Sehil’s failure to perform its contractual obligations, defective works and non-completion.

The tribunal rejected all claims against Turkmenistan and held that Sehil’s contractual counterparties acted in the legitimate exercise of their contractual rights and in a commercial capacity, that Turkmenistan courts, tax authorities and prosecutors acted in accordance with Turkmenistan law and procedures and did not violate due process.

All rights reserved

© AKIpress News Agency - 2001-2021.

Republication of any material is prohibited without a written agreement with AKIpress News Agency.

Any citation must be accompanied by a hyperlink to akipress.com.

Our address:

189 Moskovskaya st., Bishkek, the Kyrgyz Republic

e-mail: english@akipress.org, akipressenglish@gmail.com;

Tel/Fax: +996(312)65-03-06

Follow us: