Transcanada Turbines Limited v. Ministry of Electricity, Republic of Iraq, General Directorate of Electricity Al-Furat Middle Region
ICC · Investment (ICSID and treaty) · Iraq · 16 Nov 2020
Why it matters
This case demonstrates the enforcement of an ICC award against a state entity, confirming that a ministry can be a separate legal entity under Iraqi law. It also illustrates the tribunal's approach to awarding costs and interest in a long-running arbitration where the respondent was uncooperative.
Summary
Transcanada Turbines Limited (TCT), a Canadian company, entered into a Master Services Agreement (MSA) with the Ministry of Electricity of Iraq (MOE) in 2011 to service gas turbines. Disputes arose over payments, performance bonds, and additional work. TCT initiated ICC arbitration in London. The MOE challenged jurisdiction, arguing the MSA was invalid under Iraqi law for lack of stamping and document number. The sole arbitrator, Dr. Mark Hoyle, rejected this in a First Partial Award (2017), finding the MSA valid. After Dr. Hoyle resigned, Philippa Hopkins QC was appointed. The Second Partial Final Award (2020) addressed TCT's claims for unpaid invoices, demobilization costs, and the performance bond, awarding TCT substantial sums. The Third and Final Award (2021) dealt with costs and interest. The tribunal awarded TCT additional US$9,591.63 for Performance Bond costs, US$1,362,942.17 in interest, US$630,989.20 in legal costs (85% of reasonable costs), and US$82,500 in arbitration costs. The MOE was ordered to bear its own costs. The award is final and binding.
The detail
Parties: Transcanada Turbines Limited v. Ministry of Electricity, Republic of Iraq, General Directorate of Electricity Al-Furat Middle Region
Case number: ICC Case No. 21199/ZF/AYZ
Outcome: TCT awarded additional US$9,591.63 for Performance Bond costs, US$1,362,942.17 in interest, US$630,989.20 in legal costs, and US$82,500 in arbitration costs; MOE bears own costs.
Quantum: US$9,591.63 (additional) plus interest and costs
Applicable law: ICC Rules 2012; Iraqi law; seat London, UK
Issues in play: Validity of contract under Iraqi law regarding stamping and document numbering; res judicata and procedural fairness.
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