AKTOR, a subsidiary of the ELLAKTOR group, will have to pay the amount of $ 31.5 million for the execution of the Gold Line project for the Doha (Qatar) metro following a decision of an Arbitration Court that adjudicated in favor of a subcontractor. “Aktor cooperates with the other members of the Consortium in order to bring an action for its annulment, while in cooperation with both the other members of the Consortium and its legal advisors it will evaluate according to the IFRS the accounting treatment that will be adopted”, notes the ELLAKTOR group.
The following is the announcement of the company:
The company ELLAKTOR SA (hereinafter “the Company”) notifies the decision of 21.72021 of the International Court of Arbitration of the International Chamber of Commerce (ICC) (hereinafter the “Arbitral Award”), which was notified on 23.7.2021.
Pursuant to the Arbitral Award, the amount of approximately $ 98.5 million was awarded in favor of a foreign company (hereinafter referred to as the “Subcontractor”) and against the foreign consortium named “ALYSJ-JV” (hereinafter referred to as the “Consortium”). under a subcontract agreement between the Subcontractor and the Consortium for the execution of the Gold Line project for the Doha metro in the State of Qatar (hereinafter referred to as the “Project”). The subsidiary of the Company, AKTOR SA, participates in the Consortium. (hereinafter referred to as “Aktor”) with a percentage of 32%.
It is pointed out that the liability of the members of the Consortium is proportional, therefore Aktor’s participation in the obligation to repay the awarded amount corresponds to an amount of approximately $ 31.5 million, and in case it is obliged to pay an amount higher than the corresponding amount, it will claim excessive amount deductible from the other members of the Consortium, which are secured and solvent.
It is noted that the above arbitration started following requests for arbitration submitted by the Subcontractor at the end of 2017, the hearing was completed in June 2020, while the Consortium had received a letter from its legal representative, who considered that the subcontractor’s claim was not to thrive.
Aktor is cooperating with the other members of the Consortium in order to bring an action for annulment against the above decision, while in cooperation with both the other members of the Consortium and its legal advisors it will evaluate according to the IFRS the accounting treatment that will be adopted.
