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Arbitral Tribunal rejects 99,41 % of Salini Impregilo S.p.A.’s claims against the National Company for Roads Infrastructure Admnistration S.A. and grants the latter’s counterclaim for the value of RON 90,718,740 – October 2019

October 25, 2019

Mocanu si Asociatii advised and represented the National Company for Roads Infrastructure Administration S.A. (CNAIR S.A.) in the international arbitration initiated by Salini Impregilo S.p.A. before the International Court of Arbitration of the International Chamber of Commerce (ICC). Salini Impregilo S.p.A. submitted the request for arbitration against CNAIR S.A. in September 2015 and the dispute was settled on the merits in favour of CNAIR S.A. in October 2019.

Salini Impregilo S.p.A. claimed roughly RON 260,000,000, which include, inter alia, the amount of approximately RON 135,300,000 in relation to the Additional Works which were required as a consequence of the lanslides which affected Lot 3 of Orastie – Sibiu Motorway and approximately RON 83,000,000 as costs associated with an extension of the Time for Completion until 27 January 2016 and/or as compensation for lossess, damages and expenses.

By means of the Final Arbitral Award, the Arbitral Tribunal decided that the DAB decisions which were enforced by Salini Impregilo S.p.A. following a Partial Award issued in March 2017 were not correct, dismissed on the merits the claims brought by Salini Impregilo S.p.A. against the CNAIR S.A., denied Salini Impregilo S.p.A.’s entitlement to the extension of the Time for and ordered Salini Impregilo S.p.A. to pay RON 90,718,740 to CNAIR S.A., as Delay Damages due to the former’s failure to observe the Time for Completion.

The Arbitral Tribunal’s decision was mainly based on the allocation of the risk for the Landslides which affected Lot 3 of Orastie-Sibiu Motorway, which the Arbitral Tribunal decided that must be borne by Salini Impregilo S.p.A. under the contractual provisions. The value of the arbitration case for which Mocanu si Asociatii advised CNAIR S.A. was of approximately RON 350,000,000 (Euro 73,000,000)