Ethiopian Railways Ordered to Pay Turkish Contractor $307.6 Million

The London Court of International Arbitration (LCIA) has ordered the Ethiopian Railways Corporation (ERC) to pay Turkish contractor Yapı Merkezi $307.6 million in damages. This ruling concerns the suspended Awash–Kombolcha–Hara Gebeya railway project. The awarded amount is calculated as of June 30, 2026, after accounting for counterclaims made by the ERC. Additionally, the corporation is required to pay a 9% annual simple interest on the principal amount until the full debt is settled. The arbitration award was officially issued on September 23, 2026, and communicated to both parties on October 2, 2026.