Shinhan Engineering & Construction Co. v. State of Libya

At a glance

Parties

Shinhan Engineering & Construction Co. (Korea) v. State of Libya

Forum and rules

Not stated in the published document

Treaty

Libya–Korea bilateral investment treaty

Sector

Construction; housing and infrastructure

Outcome

Final award of 18 April 2023 rejected all of the claimant's claims and ordered it to pay Libya's costs, according to Libya's press release.

Amount

Claimed: LYD 660,560,359.00 plus interest and legal costs. Awarded to the claimant: nothing. Costs ordered against the claimant: USD 194,931,10.00 [figure as printed] for arbitration costs and GBP 1,267,083.00 for legal fees and expert and witness costs, each payable within 60 days, then bearing interest at 5% a year, compounded twice.

The dispute

Shinhan Engineering & Construction Co., a Korean construction company, brought an investment treaty claim against the State of Libya under the Libya–Korea bilateral investment treaty. The claim concerned four projects for residential buildings and infrastructure in Zliten, Tripoli and Zawiya. Shinhan alleged that the Libyan bodies it had contracted with breached their obligations. These were the Authority for the Development and Improvement of Administrative Centres and the Authority for the Implementation of Housing and Utilities Projects. Shinhan claimed LYD 660,560,359.00 in compensation, with interest until full payment, and all its legal costs. The only published document is a short press release in Arabic from Libya's State Litigation Department. It does not give Libya's defences, the tribunal's reasoning, the forum or the arbitrators.

Key holdings

1. In a final award dated 18 April 2023, the tribunal rejected all of the claimant's claims, as reported by Libya's State Litigation Department. Press release, p. 1
2. The claimant must pay Libya USD 194,931,10.00 (figure as printed) for the arbitration costs Libya incurred, within 60 days of notification of the award. After that, the amount bears interest at 5% a year, compounded twice, until paid in full. Press release, p. 1, item 1
3. The claimant must also pay Libya GBP 1,267,083.00 for legal fees and expert and witness costs, within 60 days of notification of the award, on the same interest terms. Press release, p. 1, item 2

Procedural history

1. 18 April 2023Final award: the tribunal rejects all of the claimant's claims and orders it to pay Libya's arbitration costs and legal costs. Libya's State Litigation Department later announced the result in a press release.

Tribunal, counsel and experts

For the respondent

State Litigation Department of Libya (Foreign Disputes Section)

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Keywords

• Shinhan
• Libya
• Libya–Korea BIT
• construction contracts
• housing projects
• infrastructure
• Zliten
• Tripoli
• Zawiya
• Housing and Utilities Projects authority
• Administrative Centres authority
• costs award
• claims dismissed
• State Litigation Department

Summary generated with AI from the published documents — refer to the award for the authoritative text.