DIPCO wins ruling against Damietta Port Authority
The International Court of Arbitration, a branch of the International Chamber of Commerce (ICC), has ruled in favour of Damietta International Ports Company (DIPCO), a 25%-owned subsidiary of KGL International for Ports, Warehousing & Transport, against Damietta Port Authority (DPA), affiliated to the Egyptian Ministry of Transport .
DIPCO filed a lawsuit against DPA for a $1.2 billion compensation, Kuwait and Gulf Link Transport Company (KGL) and KGL Logistics said in two separate statements to Boursa Kuwait on Tuesday.
KGL International for Ports, Warehousing & Transport is 38.92% owned by KGL and 24.3% owned by KGL Logistics.
The International Court of Arbitration in Paris ordered DPA to pay $303.80 million to sister companies in expenses incurred under the concession agreement as well as a 5% annual interest from 21 September 2015 until the date of full payment.
In addition, DPA will also be required to pay $120 million in compensation for lost profits and a 5% annual interest 30 days from the date of the ruling until the date of full payment as well as $3.56 million in payments to the ICC along with 50% of expenses and other charges and a 4% annual interest 30 days after the ruling until the date of full payment.
KGL said that the financial impact of the payment can’t be determined, noting that DPA will required to pay a total of $427.36 million along with interest payments to DIPCO.
The impact of the ruling will be reflected on the financial position of DIPCO, 25% owned by KGL International, the statement showed.