Despite Austerity, Algeria Disburses 145 Million Euros In Compensation To Spanish Firm OHL

date 2017/06/15 views 565 comments 0

icon-writer Hassan Houicha /*/ English Version: Med.B.

The Spanish General Construction Company (OHL) has retrieved significant amounts of money from Algeria in two dispute cases with the National Highway Agency (ANA) and Sonatrach, after it decided to avoid international arbitration and preferred a friendly solution.

The Spanish company garnered in the process about 145 million Euros in compensation fees.

According to the Spanish economic news site, the Spanish company for public construction "OHL" witnessed a breakthrough in the first months of the current year in its controversial negotiations with Algeria, including those dealing with the completion of the second motorway axis of the capital linking (Boudouaou to Zeralda), which got underway in January 2006 and secured for that matter 304 million Euros.

According to the same source, the Spanish company received compensation of 45 million Euros, or nearly 500 billion centimes in national currency, after the two parties reached an amicable solution and forsook the issue of international arbitration at the International Chamber of Commerce in Paris.

The agreement resulted in the Spanish company receiving € 45 million Euros from the National Highway Agency (ANA), after the Spanish party had requested compensation of € 107.5 million in 2013 from the International Chamber of Commerce in Paris for international arbitration, while the Algerian Highway Agency admitted owing the Spanish company the sum of 59.9 million Euros.

In late 2016, the OHL Company also reached a friendly agreement with Sonatrach, which paid the latter 100 million Euros, or at least 1,000 billion centimes (DA), for the dispute over the completion of the convention conference center in Oran (western Algeria).

With regard to the dispute between the two parties (notably concerning the draft agreement on the building of the convention center in Oran), the Spanish company demanded from Algeria financial compensation up to $ 269 million dollars, due to additional works and amendments to the Center and unpaid invoices and other services.

In addition, a railway project to be completed by OHL is still pending in Annaba, east of Algeria, worth 245 million Euros (2,500 billion centimes).

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