Bulgaria Lost Another EUR 70 Million from Another Arbitration

Bulgaria lost another case in the World Bank Arbitration Court (ICSID) in Washington and was sentenced to pay a total of more than 70 million euros, of which EUR 65 million in principal and interest as of 2019, as well as the claimant’s legal costs. The Ministry of Finance will also have to pay in full its own legal costs, which, according to our data, are at least another 5 million euros.

The subject of the case is an investment in photovoltaic parks of a Maltese company, backed by Saudi owners, according to information of Dnevnik. The company refers to its violated rights under the Energy Charter Treaty, signed by both Bulgaria and Malta. The ICSID tribunal largely agreed with the claimant’s thesis and Bulgaria ultimately lost the case.

The decision of the arbitration tribunal at the World Bank was issued and served on the parties on Friday, January 5, 2024, but for the 3rd day the Bulgarian Ministry of Finance has remained silent.

It is important to note that ICSID decisions are final and unappealable. There is no option to appeal the decision of the tribunal before a Bulgarian court, nor before a European one. Bulgaria is obliged to pay and in case of non-payment, interest is accumulated (as of last Friday) in the amount of 5.5% on an annual basis.

Повелителят на арбитражите: Кой е Иван Кондов от дирекция “Съдебна защита”?

BIRD has written several times on the topic of arbitration cases over the years, in particular about the huge fees paid to White & Case and two other law firms. Against this background, Finance Minister Asen Vassilev tried to transfer the management of these cases to the Ministry of Justice, but met with organized political and media resistance, fueling doubts that part of the huge fees are being absorbed in Bulgaria.

Три кантори прибират милиони за арбитражни дела на България, Цеко, Ковачки и Пеевски

The ICSID case filed by CEZ against Bulgaria, in which the Czech energy giant claims about 1 billion euros in damages under the Energy Charter Treaty, of which 400 million euros in connection with the so-called “energy charter”. “TPP Dogan” (TPP Varna). Повод за делото стана координираният и целенасочен държавен саботаж, който принуди чехите в крайна сметка да продадат ”ТЕЦ Варна” на правилния почетен председател за жълти стотинки.

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Разследващата журналистика е разузнаването на гражданите. BIRD се финансира от дарения. Ние не публикуваме реклами. Не получаваме държавни субсидии. Не разчитаме на грантове. Финансирането чрез малки дарения от читатели е гаранция за нашата независимост. Включете се, за да продължим да разкриваме злоупотреби и да държим отговорни властимащите. Използваме Вашите пари за хонорари на журналистите, командировки, изграждане и поддръжка на нашите информационни системи, такси за фирмени и имотни регистри у нас и по света, придобиване на техника и специално оборудване, осигуряване на нашата безопасност и други важни работни мисии. Важно: Ако дарявате всеки месец това ще ни даде възможност да планираме и организираме нашата работа. Благодарим Ви! Нас ни има, защото Вас Ви има!

This post is also available in: Български (Bulgarian)