According to the Kazakhstani Ministry of Justice, the country has won a lawsuit against Tasyapi Insaat Taahhut San. ve Ticaret A.S., a Turkish road construction company.
The topic of the lawsuit was the contract signed in August 2017 by the Roads Committee of the Ministry of Industry and Infrastructural Development of the Republic of Kazakhstan and Turks. Under the 18 billion tenge contract (roughly $48 million), the Turkish company was obliged to build and repair a 120-kilometer road between Aktobe and Makat.
“On December 3, 2019, an arbitration tribunal of the International Arbitration Center in Singapore decided in favor of the Republic of Kazakhstan, which had been sued by Tasyapi Insaat Taahhut San. ve Ticaret A.S. The claimant insisted that the actions of the Kazakhstani Road Committee were illegal as there was no breach of contract. The total sum of the lawsuit was $6.5 million,” - the ministry press release said.
As the Ministry of Justice noted, Kazakhstan was able to win over the arbitration tribunal and all demands of the claimant were rejected. Instead, the court supported all counterclaims filed by Kazakhstan, $6.7 million in total. Moreover, the Turkish claimant was ordered to cover all costs for lawyers and arbitration services.
According to Kazakhstan, the Turkish contractor failed to implement terms of the contract during the road construction and delayed mobilization of the road-constructing machinery in particular. In turn, Kazakhstan canceled its agreement to guarantee the proper implementation of the terms of contract.