Amadeus Group and Amadeus Development DOOEL v. Republic of North Macedonia

Case summary

At a glance

Parties: Amadeus Group (Albania) and Amadeus Development DOOEL (North Macedonia) v. the Republic of North Macedonia
Case no.: ICSID Case No. ARB/23/35
Forum and rules: ICSID Convention; ICSID Arbitration Rules (2022)
Treaty: Albania–North Macedonia BIT (in force 4 March 1998)
Sector: Real estate development; hotel and commercial construction
Outcome: Only the Request for Arbitration is published. The published documents do not show the outcome.
Amount: Claimed: damages estimated at no less than $110 million, plus costs and interest.

The dispute

Amadeus Group is an Albanian joint-stock company. Amadeus Development DOOEL is its wholly owned Macedonian subsidiary. In a public bidding procedure held by the Transport Ministry on 15 October 2013, Amadeus won a plot in Skopje's central square. It planned to build a commercial complex with a hotel, known for the "Spanish Steps" that the permit required. The claimants say the Municipality of Centar acted for political and discriminatory reasons. In their account, it delayed the building permit for almost two years, imposed construction bans, annulled the 2012 Urban Plan and twice declared the permit null and void. It did so despite rulings for Amadeus by the Constitutional Court, the Administrative Court, the Transport Ministry and the Ombudsman. The claimants also say the City of Skopje used the land for a "Winter Land" amusement park, planting and a Mother Teresa memorial without their consent. They claim breaches of Article 2 (permits), Article 3 (fair and equitable treatment, full protection and security, non-discrimination, national and most-favoured-nation treatment) and Article 4 (expropriation) of the BIT. The Request does not set out the State's defences.

Key holdings

No decision has been published. The claimants say their investment is covered by Article 1 of the BIT: Amadeus Group is an Albanian company, it wholly owns Amadeus Development, and it bought the plot under a Construction Lot Expropriation Agreement dated 11 November 2013. Request ¶¶ 65–68
The claimants say they met the six-month notice requirement in Article 7 of the BIT. North Macedonia received their notice of dispute on 12 February 2021 and confirmed receipt on 11 March 2021, and the dispute was not resolved. Request ¶¶ 74–75
The claimants argue that the Municipality's acts were arbitrary and discriminatory and breached fair and equitable treatment under Article 3 of the BIT. They list the revocation of the permit, the annulment of the urban plan, and the refusal to follow the decisions of the Constitutional Court, the Administrative Court and the Transport Ministry. Request ¶¶ 84–87
The claimants argue that the State expropriated their investment directly and indirectly, without a public purpose and without compensation, in breach of Article 4 of the BIT. They ask for damages of no less than $110 million, plus costs and interest. Request ¶¶ 88–91

Procedural history

15 October 2013Amadeus wins the electronic public bidding procedure held by the Transport Ministry for the Skopje plot.
28 July 2015The Municipality of Centar issues Building Permit UP1 No. 28-597/2014.
22 March 2017The Council of the Municipality of Centar annuls the 2012 Urban Plan.
31 January 2018The Constitutional Court (Decision U. No. 36/2017) annuls the Municipality's decisions.
9 February 2018The Mayor of Centar declares the building permit null and void.
20 February 2020The Administrative Court upholds Amadeus's claim against the Transport Ministry. On 3 April 2020 the Ministry reverses the Municipality's decision.
12 May 2020The Municipality again declares the building permit null and void.
12 February 2021North Macedonia receives the claimants' notice of dispute.
17 July 2023The claimants sign the Request for Arbitration (the database lists the document under 31 October 2023).