Summary

IN THE MATTER OF THE ARBITRATION UNDER THE 2013 UNCITRAL ARBITRATION RULES

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1. Claimant brought this arbitration for payment of legal fees against Afghanistan for legal services rendered to the Republic under an engagement letter that does not choose the applicable law.

2. Duly notified, properly served and on notice through electronic communication to the appropriate email address published on the Emirate’s Ministry of Finance’s public and regularly updated website, Respondent(s) failed to appear in this arbitration.

3. While some payments had been made by the Republic for the services rendered by Claimant, on August 15, 2021, the open balance amounted to $1,178,933.23 and the Taliban entered Kabul, eventually establishing a new government, naming the country of Afghanistan the Emirate. Neither the Republic prior to August 15, 2021, nor the Emirate thereafter, made payment in full.

4. Claimant seeks an award for $1,178,933.23 against both the Republic and the Emirate based on breach of contract and for an additional $48,412.87 based on both breach of contract and unjust enrichment theories for services provided and to be paid to local counsel in Afghanistan, together with costs and interest.

VIII. THE TRIBUNAL'S DECISION AND RELIEF AWARDED

WHEREFORE, for the reasons set forth above, the undersigned arbitrator AWARDS, a follows:

1) The Islamic Republic of Afghanistan and The Islamic Emirate of Afghanistan are ordered to pay to the Claimant damages in the amount of $1,178,933.23 plus $74,805.74 in accrued pre-award interest calculated at 6% simple interest per annum since December 1, 2021 i.e. a total of $1,253,738.97 together with additional post-award interest until satisfaction of the award thereon at 6% simple interest per annum starting on the day after the issuance of this Final Award, i.e. a daily amount of $206.09.

2) The Islamic Republic of Afghanistan and The Islamic Emirate of Afghanistan ar further ordered to pay Claimant costs of arbitration incurred in the amount of $502,058.86 together with additional post-award interest thereon at 6% simple interest per annum starting or the day after the issuance of this Final Award, i.e. a daily amount of $82.53.

3) All other claims are hereby denied.

I hereby certify that this Final Award was made in Washington D.C., USA.
Dated: December 22, 2022
Martin F. Gusy, Sole Arbitrator.

Ministry of Finance of the Government of the Islamic Republic of Afghanistan; Ministry of Mines and Petroleum of the Government of the Islamic Republic of Afghanistan.