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Turkish construction company Yapi Merkezi has won a $307.6 million net arbitration award against Ethiopian Railways Corporation (ERC) over a railway project in Ethiopia, following a final ruling by the London Court of International Arbitration (LCIA).
The award, dated Sept. 23, 2026, was formally notified to both parties on Oct. 2, and the amount reflects the deduction of ERC’s counterclaim, with annual simple interest of 9% continuing to accrue on the net principal until full payment, the company said in a written statement to Türkiye Today.
The dispute centers on the Awash-Kombolcha-Hara Gebeya Railway Project, which Yapi Merkezi carried out under an engineering, procurement and construction (EPC) contract.
The 392-kilometer railway project was disrupted by the war in northern Ethiopia, prompting Yapi Merkezi to seek compensation for war-related damage, looted equipment and delays, while ERC filed a counterclaim over losses it attributed to the project's suspension.
Despite the ruling in its favor, Yapi Merkezi has yet to collect the awarded amount. The company is pursuing the legal and commercial steps needed to enforce the decision and recover the money. The net award is calculated as of June 30, 2026, and interest will continue to accrue until payment is completed.
Yapi Merkezi Holding CEO Veli Tan Kirtis described the ruling as confirmation of the company's commitment to contractual discipline and responsible project management in international markets.
"This decision confirms the importance Yapi Merkezi attaches to contractual discipline in international projects, responsible project management and its determination to protect its contractual rights," Kirtis said.
He added that the company would continue working with the relevant parties through legal channels to enforce the ruling and collect the outstanding amount.
The company also reaffirmed its commitment to Ethiopia and its broader operations across Africa, despite the conclusion of the arbitration proceedings.
Founded in 1965, Yapi Merkezi has completed more than 500 projects across 69 countries on six continents and built more than 5,200 kilometers of railway infrastructure, according to company information. Its portfolio also includes the Eurasia Tunnel and the 1915 Canakkale Bridge in Türkiye.
Beyond Ethiopia, Yapi Merkezi has carried out railway and urban transport projects across Africa, including Tanzania's standard-gauge railway network, Casablanca's tramway system in Morocco and tramway projects in Algeria.
In Tanzania, the company undertakes major sections of the Dar es Salaam-Mwanza railway program, while in Senegal it joined a consortium building the regional express railway connecting Dakar with the Blaise Diagne International Airport.
Yapi Merkezi also ranks among the world's 250 largest international contractors, placing 113th in Engineering News-Record's (ENR) 2026 Top 250 International Contractors list.
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