Yapı Merkezi Secures Favourable Final Award in International Arbitration Over Ethiopian Railway Project

The award concerns the two parties to the arbitration, Yapı Merkezi Construction and Ethiopian Railways Corporation, over the Awash–Kombolcha–Hara Gebeya Railway Project. Yapı Merkezi’s position is a net receivable of USD 307.6 million as of 30 June 2026, calculated after the set-off of ERC’s counterclaim, with simple interest at an annual rate of 9 per cent accruing on the net principal until the date of full payment.

Yapı Merkezi said it continues to pursue the legal and commercial steps required to recover the amount due, engaging with the relevant parties, and that the conclusion of the arbitration does not alter its long-term approach to its activities and partnerships in Ethiopia or across Africa.

• Yapı Merkezi has been awarded a net receivable of USD 307.6 million in its arbitration with Ethiopian Railways Corporation over the Awash–Kombolcha–Hara Gebeya Railway Project in Ethiopia.
• The final award, issued in arbitration under the London Court of International Arbitration, is dated 23 September 2026.
• The final award was formally notified to the parties on 2 October 2026.
• The net receivable of USD 307.6 million is stated as of 30 June 2026, after the set-off of Ethiopian Railways Corporation’s counterclaim.

Following the final award issued in arbitration under the London Court of International Arbitration, Yapı Merkezi has been awarded a net receivable of USD 307.6 million after the set-off of the counterclaim. The decision underscores the company’s ability to protect its contractual rights and to manage complex disputes through international legal mechanisms.

The international arbitration between Yapı Merkezi Construction and Ethiopian Railways Corporation (ERC) concerning the Awash–Kombolcha–Hara Gebeya Railway Project in Ethiopia has concluded. The final award, dated 23 September 2026, was formally notified to the parties on 2 October 2026.

Under the tribunal’s decision, following the set-off of ERC’s counterclaim, Yapı Merkezi was awarded a net receivable of USD 307.6 million as of 30 June 2026. Simple interest at an annual rate of 9% continues to accrue on the net principal amount until the date of full payment.

The final award affirms Yapı Merkezi’s contractual rights under the project. Spanning several years and involving multiple parties and complex technical issues, the proceedings demonstrate the company’s institutional strength in contract management, technical documentation and dispute resolution on large-scale engineering, procurement and construction (EPC) projects.

While the arbitration award establishes a significant receivable in Yapı Merkezi’s favour, the amount has not yet been collected. The company continues to pursue the legal and commercial steps required to recover the amount due, engaging with the relevant parties in a constructive and professional manner.

A continued long-term commitment to Africa

The conclusion of the arbitration proceedings does not alter Yapı Merkezi’s long-term approach to its activities and partnerships in Ethiopia or across Africa. With more than 60 years of engineering and EPC experience, the company remains committed to contributing to the development of the continent’s transport infrastructure, particularly its railway networks.

Commenting on the final award, Veli Tan Kirtiş, CEO of Yapı Merkezi Holding, said: “This award affirms Yapı Merkezi’s commitment to contractual discipline, responsible project management and the protection of its contractual rights in international projects. We will continue to pursue the steps required to recover the outstanding receivable through a constructive and legally grounded approach with the relevant parties. Our commitment to contributing to the development of Africa’s transport infrastructure and maintaining our long-term partnerships across the continent remains unchanged.”