Ethiopia has secured “decisive victories” in two major international arbitration cases, successfully defending claims exceeding $850 million and reinforcing its legal position in global dispute resolution, the Ethiopia’s Ministry of Justice announced on Wednesday.
The cases involved a Turkish construction firm and a Netherlands based company, both of which sought substantial financial compensation from the Ethiopian government.
The first claim was brought by Akgun Insaat Makina Sanayii ve Dis Ticaret Ltd. Sti., which had secured a license to develop an industrial zone and demanded more than $500 million.
The dispute emerged after authorities found that the proposed project site was located near the Legedadi and Dire dams, critical sources of potable water for Addis Ababa.
Briefing journalists on Wednesday State Minister of Justice Belayihun Yirga said the company failed to provide a satisfactory Environmental Impact Assessment as required by law and consequently refused to relocate to other sites away from the dams to protect the city’s water supply.
The tribunal ultimately dismissed the claim, affirming that Ethiopia acted within its sovereign authority to protect public health and the environment in accordance with international law.
The second case involved African Asset Finance Company Holding B.V., widely known as Ethio Lease, a Netherlands registered firm that sought more than $350 million, alleging that regulatory enforcement measures breached investment protections.
“Our Ministry led the defense, drawing on both internal and external legal expertise. After extensive oral proceedings in The Hague, the tribunal unanimously dismissed the claim and ordered the claimant to reimburse Ethiopia for part of the legal costs,” Belayihun stated.
He noted that Ethiopia, a signatory to more than 30 bilateral investment treaties, is strengthening its institutional capacity to manage complex international disputes and safeguard national interests.
MG/as/APA