🇪🇹EthiopiaEast Africa
London court dismisses bulk of Turkish contractor’s claims against Ethiopia
via The Reporter Ethiopia7 min read
The London Court of International Arbitration has dismissed the majority of a USD 979.9 million claim filed by Turkish company Yapi Merkezi Insaat against the Ethiopian Railway Corporation ERC. The company sought compensation for damages and losses during the construction of the Awash–Kombolcha–Woldia–Hara Gebeya railway project, citing ERC's failure to secure financing and settle right-of-way compensation, insufficient electric power, and the outbreak of war. The tribunal rejected USD 750 million of the claim and ordered Yapi Merkezi to return a USD 29.1 million advance payment. Additionally, all temporarily imported machinery, vehicles, and materials must be transferred to the Corporation. The Ministry of Transport and Logistics and the Ministry of Finance, initially co-defendants, were removed from the case. While the bulk of the claim was dismissed, some compensation claims were upheld. PricewaterhouseCoopers PwC was appointed to assess admissible claims, submitting a report outlining two compensation scenarios: USD 278.9 million or USD 233.1 million, both with nine percent interest. The arbitration process is concluded, awaiting the tribunal's final ruling. The Ethiopian legal team was led by Tilahun Teshome Prof. and Kassahun Mulatu. The USD 1.7 billion EPC turnkey contract was signed in June 2012, with work commencing in August 2014. The project, financed by loans from Credit Suisse and Turkish Exim Bank, was 92 percent complete when halted due to conflict, with approx
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Ethiopia's Ministry of Finance announced the restoration of daily diesel supply to nine million liters, following a two-month period of reduced volume due to supply disruptions caused by the US-Israeli war in Iran. Fuel trucks have begun transporting diesel from Djibouti to Addis Ababa, with more expected to reach regional towns and cities. This development is anticipated to alleviate the challenges faced by truck and public transport drivers who have experienced long queues at pumping stations. The diesel crisis had previously impacted food and commodity prices, particularly fresh produce, and led to a nearly 17 percent increase in diesel retail prices to 163.09 Bir per liter. Reports also indicated a rise in illicit fuel trade during the disruption. Talks between the US and Iran have stalled after eight weeks of fighting, raising concerns about shipping through the Strait of Hormuz.
Dashen Breweries SC has announced the appointment of Matiyas Getachew as its new Chief Executive Officer. This appointment marks a significant transition as Matiyas becomes the first Ethiopian executive to lead a major brewery in a sector traditionally headed by expatriates. Matiyas joined Dashen in 2020 as Chief Financial Officer and was named acting CEO last year after the departure of Mario Van Geldern. The company elevated him to permanent CEO due to his strong leadership and achievements as CFO during challenging macroeconomic conditions. Matiyas holds a bachelor’s degree from Addis Ababa University’s Commercial College, is a chartered certified accountant, and has a master’s degree from Heriot-Watt University. His international background includes leadership roles at SABMiller, Coca-Cola Beverages Africa, and Diageo. Industry observers note this appointment reflects a broader trend toward local leadership in multinational corporations, with other major players like Coca-Cola and Unilever also recently appointing local CEOs. An industry analyst stated that Matiyas’s appointment shows growing confidence in Ethiopia’s ability to empower homegrown executives to lead large consumer businesses. Dashen Breweries was founded in 2000 by Tiret Corporate, with Duet Group, a UK investment firm, holding a majority stake since 2012.
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