Al Faw breakwater spans 14km. Reuters
Al Faw breakwater spans 14km. Reuters
Al Faw breakwater spans 14km. Reuters
Al Faw breakwater spans 14km. Reuters

Iraq told to pay $120m to construction company in dispute over Al Faw breakwater


Tariq Tahir
  • English
  • Arabic

The Iraqi government and its ports operator have been ordered to pay $120 million to a construction company in a dispute over the breakwater at Al Faw port.

A court in the US has awarded the sum to Archirodon after it incurred significant additional costs in building the 14km breakwater, which is recognised as the longest in the world.

Archirodon, a Cypriot company, was awarded the $265 million contract to build the breakwater at Al Faw Grand Port by the General Company for Ports of Iraq (GCPI) in 2012.

The port is due to be completed next year and will be the largest in the Middle East, and one of the world’s biggest.

“But its ambitions have come at a cost,” said US judge James Boasberg, who in his ruling in favour of Archirodon, described how during the construction of the breakwater a “number of unforeseen obstacles” emerged.

The company was unable to recruit enough workers as a result of ISIS launching a major offensive against the Iraqi government. Foreign countries from which Archirodon recruited its workforce discouraged or even prohibited their citizens from travelling to Iraq, said Mr Boasberg.

Fear of attacks from ISIS resulted in problems finding enough workers for Al Faw breakwater. AP
Fear of attacks from ISIS resulted in problems finding enough workers for Al Faw breakwater. AP

Fears that the local population’s objection to trucks and heavy vehicles using the Basra-Al Faw road would lead to protests and the use of alternative routes, causing “significant delays”.

The soil conditions stated in the tender by the GCPI were also incorrect and led to “significant bulging” during the construction of the embankment. After the construction was not completed in time, the GCPI imposed a penalty of Archirodon of about $24 million.

The company responded in 2016 by seeking arbitration at the International Chamber of Commerce to recoup the extra costs incurred by the delays to construction.

In 2019, the ICC found in favour of Archirodon and the company then went to court in the US to enforce the award against the GCPI.

The action was taken under the New York Convention, an international treaty signed by more than 150 countries, which allows the enforcement of decisions made under arbitration.

Initially, three Iraqi parties did not appear in any of the actions heard in the Washington court and earlier this year Mr Boasberg awarded $120 million.

Archirodon has been awarded $120 million for the costs it incurred as a result of delays to construction. Reuter
Archirodon has been awarded $120 million for the costs it incurred as a result of delays to construction. Reuter

But, the parties filed a motion seeking to overturn the decision based on sovereign immunity, a legal principle under which states cannot be sued. An exception to this is when a state has agreed to arbitration.

The Iraqis argued the GCPI acted as a separate entity in arbitration and not as part of the Iraqi state, which meant the government should not be accountable for the sum awarded to Archirodon.

In his ruling, Mr Boasberg dismissed the claim and said the GCPI signed the arbitration agreement as an agent of the Ministry of Transport, which is an inseparable part of Iraq, so the three parties were liable.

He also dismissed other claims including that Archirodon’s lawyers used courier company DHL instead of the US Postal Service, which they tried to argue was in breach of regulations.

Throwing out the Iraqi's motion Mr Boasberg said they “presented no other argument to explain the four-month – now eight-month – delay in paying up”.

The GCPI, the Ministry of Transport, the Ministry of Foreign Affairs and Archirodon have been approached for comment.

The specs
 
Engine: 3.0-litre six-cylinder turbo
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Transmission: Eight-speed auto
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Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday. 

Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow. 

She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.

A spokesman said her upset demeanour was due to a personal matter.

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UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
The specs
Engine: 4.0-litre flat-six
Power: 510hp at 9,000rpm
Torque: 450Nm at 6,100rpm
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Fuel economy, combined: 13.8L/100km
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Since 2001, Ms Davison has worked at many affordable schools such as Our Own English High School in Sharjah, and The Apple International School and Amled School in Dubai

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2. Sam Bennett (IRL) Deceuninck-QuickStep - same time

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Based: Jordan

Sector: FinTech

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Investors in Jaib's mother company Alpha Apps: Aramex and 500 Startups

Kalra's feat
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Pharaoh's curse

British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.

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How green is the expo nursery?

Some 400,000 shrubs and 13,000 trees in the on-site nursery

An additional 450,000 shrubs and 4,000 trees to be delivered in the months leading up to the expo

Ghaf, date palm, acacia arabica, acacia tortilis, vitex or sage, techoma and the salvadora are just some heat tolerant native plants in the nursery

Approximately 340 species of shrubs and trees selected for diverse landscape

The nursery team works exclusively with organic fertilisers and pesticides

All shrubs and trees supplied by Dubai Municipality

Most sourced from farms, nurseries across the country

Plants and trees are re-potted when they arrive at nursery to give them room to grow

Some mature trees are in open areas or planted within the expo site

Green waste is recycled as compost

Treated sewage effluent supplied by Dubai Municipality is used to meet the majority of the nursery’s irrigation needs

Construction workforce peaked at 40,000 workers

About 65,000 people have signed up to volunteer

Main themes of expo is  ‘Connecting Minds, Creating the Future’ and three subthemes of opportunity, mobility and sustainability.

Expo 2020 Dubai to open in October 2020 and run for six months

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UAE currency: the story behind the money in your pockets
MATCH INFO

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ESSENTIALS

The flights

Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.

The hotels

Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.

The tours

A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages. 

Updated: September 02, 2024, 2:57 PM`