Latest news with #arbitration
Zawya
19 hours ago
- Business
- Zawya
Kenya, Uganda win $2bln claim case in London over failed rail concession
Kenya and Uganda have blocked a $2 billion claim lodged by Rift Valley Railways (RVR) in the London Court of International Arbitration (LCIA) over a collapsed 25-year concession to run the 2,350-kilometre Kenya-Uganda railway. The concession was terminated by Nairobi and Kampala in 2017 after RVR, the consortium that managed the railway system, failed to meet the contractual obligations. The case began when KU Railway Holdings Ltd (formerly Sheltam Rail Company Pty) and RVR Investments Ltd initiated arbitral proceedings at the London Court of Arbitration against Kenya and Uganda in 2020, seeking compensation for breach of the concession agreements for the sum of $2,005,900,000. These agreements related to the operation, construction and management of the now-defunct Rift Valley Railways line, a joint freight and passenger transport project between the two nations. In its ruling, the LCIA entirely dismissed the $2 billion claim, awarding costs in favour of Kenya, according to its Attorney-General.'This outcome not only upholds the integrity of Kenya's legal and commercial commitments but also protects the Kenyan taxpayer from what would have been a staggering financial liability,' said a press statement from the AG's office on Friday. 'This win reaffirms Kenya's resolve to uphold lawful governance, protect public resources and maintain international credibility.'Termination noticesThe dispute stemmed from a 25-year concession granted to RVR in 2006 to operate the metre gauge railway in Kenya and Uganda, following a World Bank recommendation in 1998. RVR operated the line until its concession was terminated in 2017, just around the time Kenya unveiled its standard gauge railway (SGR) line, reflecting the challenges of public-private partnerships (PPP) in infrastructure projects in the East African region. RVR had failed to meet contractual obligations, including payment of concession fees and achieving freight targets. In 2017, Kenya Railways issued RVR a 90-day notice of intention to terminate the concession on account of unpaid fees amounting to Ksh600 million ($4.65 million), inadequate investment and failure to meet the contractual freight volumes. This was followed by a termination notice after RVR failed to address the issues. Kenya was followed by Uganda in terminating the concession to run its railway line in the same year. Uganda also cited failure by RVR to meet its obligations as set out in the concession agreement signed when the firm took over the Kenya-Uganda Railway in 2006. Kenya was on April 2020, served with an initial notice of arbitration and an amended notice of arbitration a week later notifying the Nairobi and Kampala governments of the arbitral proceedings. The Kenya Railway Corporation and Uganda Railway Corporation had signed the concession documents in a deal that would have seen the two bodies transfer their railway assets to RVR in return for an 11 percent of gross revenue during the concession period. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Reuters
2 days ago
- Business
- Reuters
Spain's Endesa faces $240 million claim in LNG contract dispute
MADRID, July 29 (Reuters) - Spanish power utility Endesa ( opens new tab faces claims of $240 million as part of an arbitration process related to a price review of a long-term liquefied natural gas supply contract, it said in a financial report published on Tuesday. The amount could change during the arbitration, launched by an unidentified LNG producer in January, the conclusion of which is not expected before the end of next year, it said. Endesa disclosed the legal dispute in February, at which time it estimated a potential hit of $300 million. The claim was then presented in June. Owned by Italian energy giant Enel ( opens new tab, Endesa was in 2023 ordered to pay $570 million to QatarEnergy in a dispute over a retroactive price adjustment, while in November, a court rejected a similar case filed by a Nigerian supplier seeking around $650 million in compensation. The company plans to progressively reduce its gas business as part of its decarbonisation plans and will let contracts with Qatar and Nigeria that end in 2025 and 2026, respectively, expire.
Zawya
3 days ago
- Business
- Zawya
Kenya wins $2bln claim case in London over failed railway concession
Kenya has blocked a $2 billion claim lodged by Rift Valley Railways (RVR) in the London Court of International Arbitration (LCIA) over a collapsed 25-year concession to run the 2,350-kilometre Kenya-Uganda railway. The concession was terminated by Nairobi and Kampala in 2017 after RVR, the consortium that managed the railway system, failed to meet the contractual obligations. The case began when KU Railway Holdings Ltd (formerly Sheltam Rail Company Pty) and RVR Investments Ltd initiated arbitral proceedings at the London Court of Arbitration against Kenya and Uganda in 2020, seeking compensation for breach of the concession agreements for the sum of $2,005,900,000. These agreements related to the operation, construction and management of the now-defunct Rift Valley Railways line, a joint freight and passenger transport project between the two nations. In its ruling, the LCIA entirely dismissed the $2 billion claim, awarding costs in favour of Kenya, according to its Attorney-General.'This outcome not only upholds the integrity of Kenya's legal and commercial commitments but also protects the Kenyan taxpayer from what would have been a staggering financial liability,' said a press statement from the AG's office on Friday. 'This win reaffirms Kenya's resolve to uphold lawful governance, protect public resources and maintain international credibility.'Termination noticesThe dispute stemmed from a 25-year concession granted to RVR in 2006 to operate the metre gauge railway in Kenya and Uganda, following a World Bank recommendation in 1998. RVR operated the line until its concession was terminated in 2017, just around the time Kenya unveiled its standard gauge railway (SGR) line, reflecting the challenges of public-private partnerships (PPP) in infrastructure projects in the East African region. RVR had failed to meet contractual obligations, including payment of concession fees and achieving freight targets. In 2017, Kenya Railways issued RVR a 90-day notice of intention to terminate the concession on account of unpaid fees amounting to Ksh600 million ($4.65 million), inadequate investment and failure to meet the contractual freight volumes. This was followed by a termination notice after RVR failed to address the issues. Kenya was followed by Uganda in terminating the concession to run its railway line in the same year. Uganda also cited failure by RVR to meet its obligations as set out in the concession agreement signed when the firm took over the Kenya-Uganda Railway in 2006. Kenya was on April 2020, served with an initial notice of arbitration and an amended notice of arbitration a week later notifying the Nairobi and Kampala governments of the arbitral proceedings. The Kenya Railway Corporation and Uganda Railway Corporation had signed the concession documents in a deal that would have seen the two bodies transfer their railway assets to RVR in return for an 11 percent of gross revenue during the concession period. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc.
Yahoo
3 days ago
- Business
- Yahoo
Timmins, Sabres Settle On A Two-Year Contract Extension
Just under a week before the two sides were scheduled for saiary arbitration, the Buffalo Sabres and defenseman Conor Timmins agreed on a two-year, $4.4 million contract extension. The 26-year-old blueliner was acquired from the Pittsburgh Penguins in a deal for veteran Connor Clifton and the Sabres 2025 second-round pick on day 2 of the NHL Draft last month.
Yahoo
4 days ago
- Sport
- Yahoo
Intriguing Blackhawks Goalie Could Reach New Heights
Earlier this week, the Chicago Blackhawks re-signed goaltender Arvid Soderblom to a two-year, $5.5 million contract. The Blackhawks and Soderblom were scheduled for arbitration, but they have now avoided that by getting this new contract done.
