Uganda Successfully Defends Government of Uganda Against Salini Costruttori, Represented by American Firm, King & Spalding LLP

May, 2013 - South Africa, South Africa

In a ground-breaking ICC arbitration that spanned just over two years, the three member tribunal chaired by ICC Court chairman John Beechey recently ruled against Italian roadbuilder Salini in a dispute with the Government of Uganda in the construction of the Kampala Northern By-Pass (KNBP) in Uganda’s capital. The Tribunal found that the KNBP Specification was achievable and that the Legal Team was able to comprehensively rebut all of Salini’s technical evidence. Salini’s claim for over 60 billion shillings (US$23 million) was denied with the tribunal making a ruling that they will not be entitled to any additional payment.

The Ugandan government launched a successful application for the tribunal to sit in Uganda.

It is also the first time that the Ugandan government has entrusted a major international arbitration to an African law firm.

The government was represented by Synergy Solicitors & Advocates, ENSafrica Uganda’s legacy firm, who took the decision in January this year to be part of ENSafrica.

There has been a recent move by African governments to involve local counsel in arbitration matters as African states have been openly accused of not relying on their own practitioners to represent them in disputes, contributing to a shortage of domestic arbitrators.

“This recent arbitration award by an African law firm is a huge boost for the continent and testament to the untapped skill and expertise of Africa’s homegrown talent,” said Bernard Katureebe, ENSafrica Uganda executive and lead local counsel for the Ugandan government on the matter.

Piet Faber, Chief Executive of ENS, adds, "And it is this exact expertise and specialisation that ENS offers clients across Africa. ENS is in Africa for Africa – and we intend to continue to build a fully-integrated firm across Africa. Africa has been widely promoted in the press as one of the up and coming economic investment hubs of the world, and in order for our clients to truly capitalise on the opportunities that exist across Africa, in the most cost-effective way, it is vital that their interests are looked after. Our Ugandan partners have made us proud – they have shown the world what is possible, and that, in Africa, we can provide clients with innovative, world-class solutions wherever they choose to do business on the continent."

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