Samsung files for arbitration against SWCC over Yanbu 3 cancellation
Samsung Engineering has asked the World Bank's International Center for Settlement of Investment Disputes (ICSID) to begin arbitration proceedings against Saudi Arabia over the cancellation of its contract on Yanbu 3 water and power project.
The ICSID provides for settlement of disputes between investors/private companies and nation states, by conciliation, arbitration, or fact-finding. The move follows the decision by Saudi Arabia’s national water agency, Saline Water Conversion Corporation (SWCC), to cancel its contract with Samsung in January 2017 owing to a dispute over project changes.
Yanbu 3 power and water project is a major construction contract to build a power generation plant with 2,500 MW capacity, and a multi-stage flash desalination plant of 550,000 m3/d. The whole project cost is SAR 5.16 billion ($1.37 billion), reports Reuters.
In 2012, the power element of the project was awarded to a consortium of Shanghai Electric, Samsung Engineering, and Saudi Al Toukhi Group. The $1 billion desalination contract, covering equipment design, manufacturing, installation, and testing, went to Doosan Heavy Industries & Construction.