Arbitral Digest

Matter

Desert Line Projects LLC v. Republic of Yemen (ICSID Case No. ARB/05/17)

Case no.
ARB/05/17
Applicable rules
ICSID Arbitration Rules (2003)
  1. 9 August 2004Arbitration

    9 August 2004Arbitration

    Yemeni Arbitral Award dated 9 August 2004

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Yemeni Arbitral Tribunal awarded YER 18,447,857,500 for road construction projects and YER 1,520,620,929 for additional costs, subject to the Award's terms and deduction of amounts already paid, and required the legally required guarantees to be maintained until the stated obligations were cured.

    Supporting details

    International Centre for Settlement of Investment Disputes

    1 year, 7 months and 7 days later · 584 days

  2. 16 March 2006Arbitration

    16 March 2006Arbitration

    Procedural Order No. 1 dated 16 March 2006

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal directed the parties to submit witness statements with their second exchange of briefs and allowed possible supplementary witness statements by the Claimant in response to the Respondent's Rejoinder, subject to authorization.

    Supporting details

    International Centre for Settlement of Investment Disputes

    3 months and 3 days later · 95 days

  3. 19 June 2006Arbitration

    19 June 2006Arbitration

    Procedural Order No. 2 dated 19 June 2006

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal held the Claimant's document-production request premature, reserved consideration after the first exchange of briefs, and amended the filing timetable.

    Supporting details

    International Centre for Settlement of Investment Disputes

    5 months and 3 days later · 156 days

  4. 22 November 2006Arbitration

    22 November 2006Arbitration

    Procedural Order No. 3 dated 22 November 2006

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal joined the jurisdictional objections to the merits and amended the timetable for the Respondent's Counter-Memorial and subsequent written pleadings.

    Supporting details

    International Centre for Settlement of Investment Disputes

    8 days later · 8 days

  5. 30 November 2006Arbitration

    30 November 2006Arbitration

    Procedural Order No. 4 dated 30 November 2006

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal partly accepted the Respondent's request for an extension of time, fixed revised filing dates, and requested the parties' availability for new oral-hearing dates.

    Supporting details

    International Centre for Settlement of Investment Disputes

    5 months and 15 days later · 166 days

  6. 15 May 2007Arbitration

    15 May 2007Arbitration

    Procedural Order No. 5 dated 15 May 2007

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal suspended the Claimant's request to summon the Yemeni President and Prime Minister as witnesses and reserved the issue for decision during or after the June 2007 hearing.

    Supporting details

    International Centre for Settlement of Investment Disputes

    8 days later · 8 days

  7. 23 May 2007Arbitration

    23 May 2007Arbitration

    Procedural Order No. 6 dated 23 May 2007

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal ordered the organisation of the witness hearings scheduled for June 2007.

    Supporting details

    International Centre for Settlement of Investment Disputes

    8 months and 14 days later · 259 days

  8. 6 February 2008Arbitration

    6 February 2008Arbitration

    Award dated 6 February 2008

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal found that it had jurisdiction, held that the Settlement Agreement contravened Yemen's obligations under Article 3 of the Yemen-Oman Bilateral Investment Treaty and had no international effect, and ordered implementation of the Yemeni Arbitral Award. It dismissed Yemen's counterclaims and other claims, awarded compensation equivalent to YER 3,585,446,554 in Omani rials and USD 1,000,000 in moral damages, ordered 5% simple interest on the specified amounts subject to the stated conditions, allocated arbitration costs 30% to Desert Line and 70% to Yemen, and ordered Yemen to pay USD 400,000 in legal expenses.

    Supporting details

    10 authorities · 12 participants
    Desert Line Projects LLC
    Representative
    Hamid G. Gharavi (For: Desert Line Projects LLC)
    Representative
    Raed Fathallah (For: Desert Line Projects LLC)
    Republic of Yemen
    Representative
    Rashed Al Rassas (For: Republic of Yemen)
    Representative
    Rodman R. Bundy (For: Republic of Yemen)
    Representative
    Loretta Malintoppi (For: Republic of Yemen)
    Representative
    Charles Claypoole (For: Republic of Yemen)
    International Centre for Settlement of Investment Disputes
    Arbitrator
    Pierre Tercier
    Arbitrator
    Jan Paulsson
    Tribunal secretary
    Milanka Kostadinova

    Authorities cited

    10
    • Yemen-Oman Bilateral Investment Treaty (Yemen-Oman BIT)
      statute
    • Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention, 1965)
      statute
    • Yemeni Arbitration Law (Presidential Decree No. 22 of 1992) (Presidential Decree No. 22 of 1992)
      statute
    • Fraport AG Frankfurt Airport Services Worldwide v. Philippines (ICSID Case No. ARB/03/25, 16 August 2007)
      case-law
    • Inceysa v. Republic of El Salvador (ICSID Case No. ARB/03/26, 2 August 2006)
      case-law
    • LESI SpA et Astaldi SpA v. Algeria (12 July 2006)
      case-law
    • Amco Asia et al. v. Indonesia (5 June 1990, 1 ICSID Reports 569)
      case-law
    • United States v. Germany (Lusitania cases) (November 1923, VII RIAA 32)
      case-law
    • James Crawford, ILC Articles on State Responsibility (ILC Articles on State Responsibility)
      academic
    • Vienna Convention on the Law of Treaties
      statute

Matter record

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Desert Line Projects LLC v. Republic of Yemen (ICSID Case No. ARB/05/17) · Matter