Summary

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Case report (free download)

Case Report by Alyson Joy Akoka, Editor Diego Luis Alonso Massa

Summary

On 28 May 2007, the Republic of South Sudan ("Respondent") set up a tender ("May Bid Contract") for the construction of electric power in eight towns, Awil, Bentiu, Bor, Malakal, Rumbek, Tori, Warrap and Yambio. The winner of the tender would receive a Final Letter of Award after which a contract ("Contract", "Technical Contract") would be formally signed. On 7 February 2008, Active Partners Group Ltd ("Claimant") received the Final Letter of Award. Claimant was the successful bidder with costs of USD 197,863,146 for the electrifying project. Before the contract was signed, Claimant asserts that Respondent modified the contract to include only five towns rather than eight. By that time, Claimant had already carried out surveys of the eight towns. The Contract was formalized on 5 October 2008 and the Financial Agreement ("Finance Agreement") was signed on 16 November 2008. The Finance Agreement stipulated the date of the handing over of the site for the construction work to commence and the requirement of a letter of guarantee. However, allegedly the letter of guarantee was not submitted by Respondent to Claimant. As such, Claimant terminated the Contract and proceeded to obtain reparation recourse to arbitration in 2012.

Main issues

Applicable law; Scope of the Agreement; Termination of the Agreement; Lost Profits; Consequential Damages; Liquidated Damages.

Active Partners Group Limited v. The Republic of South Sudan (PCA Case No. 2013/4) - Final Award - 27 January 2015

Case report provided by International Arbitration Case Law (IACL)