International Court of Arbitration delivers in favor of Albania in 137m euro trial with Beghetti’s Hydro S.R.L.
Albania has won a confrontation in the arbitration court with the company Hydro S.R.L., which required a 137m-euro compensation for the breaking of the construction concession of the Kalivac hydropower plant.
The company, owned by Italian businessman Francesco Beghetti, filed in October 2014 at the International Court of Arbitration of the International Chamber of Commerce a case against the Ministry of Transport and Economy, seeking the resolution of the concession agreement concluded between the litigating parties for the construction of the hydro power plant on Vjosa River.
The Albanian government filed a counterclaim in this process, claiming that the plaintiff had been in breach of the concession agreement, causing a damage of 158m euros.
In addition to payment of this damage, Albania also requested the payment of interests for non-performance of the contract up to a value of € 12.9 million.
The arbitration court decided to dismiss all claims offered by the plaintiff by charging the latter with not fulfilling the contract and with the payment of interests up to the aforementioned value and of all legal costs and the arbitration process costs incurred by the litigant, to the amount of about € 1.2 million.
While in a second decision, the court is expected to set the amount of compensation that the claimant will have to pay to Albania for failing to comply with the Concession Contract, together with all other interests and applicable expenses.
Source: International Court of Arbitration delivers in favor of Albania in 137m euro trial with Beghetti’s Hydro S.R.L.
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