THE International Chamber of Commerce-(ICC) has ruled in favour of the
Tanzanian government in a case filed by the Petroleum Bulk Procurement Agency (PBPA) and the Attorney General against United Arab Emirates based Alchemist Energy Trading DMCC for breaching contract.The ICC delivered the ruling on March 6, this year.
The case was filed at the ICC after the Alchemist Energy Trading DMCC failed to supply fuel in accordance with the contract resulted from the tender No. PBPA/ CPP/PMC/C3-KOJI/02/2021 dated January 5, 2021 for the importation of 36,192 metric tonnes of fuel which was supposed to be received from February 27, 2021 to March 01, 2021.
On the side of the Tanzanian government, the defense team was led by the Solicitor General, Dr Boniphace Luhende, in collaboration with other lawyers from his office, Attorney General’s Office and the Petroleum Bulk Procurement Agency (PBPA).
In its decision, the ICC ruled that Alchemist Energy Trading DMCC breached the contract and has ordered the company to pay the Petroleum Bulk Procurement Agency (PBPA) a sum of 9,710,651.45 US dollars together with pre-award interest of 7.67 per cent from May 18, 2021 to November 2023; for breach of contract and failure to deliver fuel to the country.
In addition to being ordered by the tribunal to pay the said amount of money for breach of contract, Alchemist Energy Trading DMCC is also required to pay PBPA 1,140,048 US dollars as a penalty for disrupting the bulk oil procurement system, pay PBPA 882,000 US dollars as costs of the tribunal and pay 818,285,700/- as legal costs and pay post-award interest at the rate of 7.67 per cent from March 6, 2024 until the company finishes to settle all the amount owed.
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