Qatar Foundation (QF) has secured a significant legal victory after an International Chamber of Commerce’s (ICC) arbitration tribunal ruled in its favour in a hospital construction dispute.

The Paris-based ICC awarded the Doha-based state-owned philanthropic organisation approximately one billion Qatari rials ($275 million) in compensation, with an award on costs to follow.

The dispute dates back to nearly 20 years and involves the construction of Sidra hospital in the Qatari capital Doha by a joint venture between Spain’s Obrascon Huarte Lain and Contrack Cyprus Lt, which is a subsidiary of Egypt’s Orascom Construction.

Wednesday’s ICC decision follows on from an earlier ruling that confirmed that the QF lawfully terminated its contract with the joint venture for the design and construction of Sidra Medicine Hospital.

A spokesperson for QF, quoted by the local press, said: “QF welcomes the award issued by the ICC, which further vindicates QF's position in this long-standing dispute and awards substantial compensation to QF.”

He added:”This award underscores QF's commitment to upholding the highest standards of project management and accountability. While we are pleased with the outcome, our primary focus is on ensuring the continued success of Sidra Medicine in providing world-class healthcare to women and children in Qatar and the region.

Sidra Medicine is an academic healthcare and research institution dedicated to women, children, and young people. It uses clinical research to deliver personalised care especially for patients suffering from rare and genetic diseases in Qatar, the Middle East and Africa.

QF said the full amount awarded of QAR 1 billion will be reinvested into the Sidra Medicine endowment, allowing it to expand its services.

QF had first contracted the JV in 2009 to design and construct Sidra Medicine. Due to defaults and delays, QF terminated its contract with the JV in 2014 and commenced arbitration proceedings against the JV.

During the arbitration the JV made two unsuccessful applications in 2018 and 2019 to the High Court of England and Wales in relation to partial awards in QF’s favour.
This latest ruling, which was also reported by Orascom Construction, awards QF substantial compensation following on from previous awards on liability.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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