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.
Latest News
Europeche: Greek Apricot Production Recovers
Europeche forecasts the production will bounce back despite a slight decrease in varieties attributed to high winter temperatures
Bank of Greece (BoG): Business-Household Deposits Up 1,675bln in March 2024
In March 2024, the monthly net flow of credit to the general government was negative by 469 million euros
FT: Greece’s Economic Rebound a Balance of Growth and Poverty
Eurostat data revealed a significant 10.8% drop in Greek public debt relative to GDP in 2023, alongside a 2% economic expansion, outpacing Germany's performance.
Lavrio Port Authority Next Up for Privatization
A deadline for the submission of expressions of interest is May 14, 2024
Eurostat: Greece Records Largest Drop in Natural Gas Prices in 2nd Half of 2023
The price of electricity and natural gas in Europe was down following a substantial surge that began before the Russian invasion of Ukraine and peaked in 2022
GEK TERNA Still Considers Leveraging Concessions Portfolio as Financial Tool
President and CEO of Gek Terna George Peristeris explained the company's plans on Tuesday on the sidelines of the inauguration of sections of Greece's E65 highway
NielsenIQ: 3% Supermarket Revenue Increase in Q1
Private label products are gaining traction, comprising 25.4% of shopping basket shares, up from 24.7%
Store Hours Change Today in Observation of Orthodox Easter
The President of the Athens Chamber of Commerce hopes the Easter period will provide a much-needed boost to retail traffic in the capital
Athens-area Mass Transit Systems Set to Finally Install Contact-less Fare Payment
Paying fares via bank cards, smartphones and smartwatches in all mass transit systems in the Greek capital, namely, buses, trolleys, the metro and tram lines, is scheduled by the end of the year
Council of State Rejects Motion Against Thessaloniki Motorway Project
The motion was filed earlier this month by three local citizens’ and environmental groups and generated a high court decision for a temporary stay in construction