The Roads Department has won three disputes in international arbitration in France
The Roads Department has won three disputes in international arbitration in France
29 July, 2022 11:15:43

The Georgian Roads Department of the Ministry of Regional Development and Infrastructure of Georgia won three disputes in the French international arbitration.

He filed disputes with the construction companies of the first and third sections of the East-West International Expressway (E-60) Samtredia-Grigoleti and the Upper Ossiauri-Chumateleti section.

The Roads Department terminated the contracts with the contractor companies due to non-fulfillment of the obligations and started a legal dispute in the international arbitration in order to compensate the damages caused by them. Disputes, represented by the Ministry of Justice of Georgia and with the involvement of international legal companies, were conducted in international arbitration in Paris.

The arbitration decided all three disputes in favor of the Roads Department and allocated approximately 187 million GEL to the department in order to compensate the damages received within the framework of all three arbitration disputes.

Currently, a new construction company is carrying out works on the first section of Samtredia-Grigoleti. The works are planned to be completed by the end of 2022. The construction of the Upper Ossiauri-Chumateleti section is actively underway, which, according to the contract, will be completed in 2023. As for the 3rd section of Samtredia-Grigoleti, tender procedures are underway to select a new contractor.

In 2018-2022, after the termination of contractual relations with international companies by the Roads Department, the total amount of funds attributed by arbitration and recovered using liability measures is approximately 311 million GEL.

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