LCIA Orders ERC to Pay Yapi Merkezi $213.6 Million in Arbitration Ruling

The London Court of International Arbitration (LCIA) has ordered the Ethiopian Railways Corporation (ERC) to pay Turkish contractor Yapi Merkezi $213.6 million, plus 9% interest. The final ruling, issued on September 23, 2026, pertains to the terminated Awash–Kombolcha–Hara Gebeya railway project.

The three-member arbitration panel concluded that the contractor was not obligated to continue project works following the disruption caused by the civil war in northern Ethiopia. The panel classified the conflict as a 'force majeure' event, absolving the company of liability for stopping operations.