The Egyptian Ministry of Electricity and Renewable Energy called on Toyota, Orascom, and GD France alliance to accept that arbitration in case of dispute to be held in Egypt, in order to complete the contracting on the Suez Gulf wind farm, reported Daily News Egypt.
Sources at the ministry stated that negotiations are ongoig in order to complete the contract by placing arbitration in case of dispute in Cairo. The arbitration clause in the contract was previously rejected by the alliance. It requested arbitration to be held in front of non-Egyptian tribunal. Yet, a source with the Toyota alliance stated that the group insists on amending the term of arbitration in Cairo, based on the request made by the financing parties. Although the Ministry of Finance approved to guarantee the project, the agreement’s article related to arbitration is still standing in the way of the final signing.
The ministry negotiated with the alliance after the final agreement with the Akila and Actis consortium stumbled. The Toyota, Orascom, and GD France alliance had offered the lowest prices, yet it had not completed the procedures and requirements announced by the ministry.
The Egyptian Electricity Transmission Company (EETC) aims to complete the agreements and sign the contracts during the first quarter of 2017.