Expert support in US$300 million Ethiopian railway arbitration
HKA provided construction quantum expert services to Yapı Merkezi, alongside Akinci Law Office, in a major LCIA arbitration arising from the disruption of the US$1.7 billion Awash-Woldia/Hara Gebeya railway project in Ethiopia. The dispute resulted in an award of more than US$300 million in damages plus interest to Yapı Merkezi.
Brief
HKA provided quantum expert services to Turkish contractor Yapı Merkezi in an LCIA arbitration with Ethiopian Railway Corporation concerning the suspended 392-kilometre Awash-Woldia/Hara Gebeya railway project in Ethiopia. The US$1.7 billion engineering, procurement and construction project was intended to link central and northern Ethiopia.
Construction began in 2015 and was expected to be completed within three years. In 2021, after only the first phase had been completed, Yapı Merkezi said it was forced to halt work following the outbreak of civil war in Ethiopia’s northernmost state of Tigray. The contractor claimed that nearby fighting had damaged infrastructure and led to equipment being looted.
What we did
HKA Partners Paul Cacchioli and Ekrem Kaya provided independent expert support on the quantum issues arising from the railway project. Their work supported Yapı Merkezi in assessing the cost and delay impacts of the project’s disruption during the LCIA proceedings.
Outcome
The tribunal ordered Ethiopian Railway Corporation to pay Yapı Merkezi more than US$300 million in damages plus interest and dismissed the state entity’s US$1.3 billion counterclaim, save for amounts relating to the recovery of advance payments that the contractor did not dispute. The final award was issued on 2 October 2026, following a partial award on jurisdiction and liability in April 2025.
The outcome was reported by Global Arbitration Review.
