Iraq faces $120M fine over Al-Faw Port dispute
Shafaq News/ On Tuesday, Yasser Al-Husseini, Deputy Chairman of the Iraqi Parliament’s Economic Committee, described the claims made by the Cypriot company responsible for constructing the breakwater at Al-Faw Port in Basra as "unrealistic."
The company has filed a lawsuit against the Iraqi Ports Company seeking financial compensation. Al-Husseini emphasized that "the contract signed with the company was in violation of the law."
In an interview with Shafaq News Agency, Al-Husseini stated, "The Cypriot company recently resorted to the International Court of Arbitration, which ruled that Iraq must pay $120 million in compensation due to the Iraqi Ports Company’s failures and shortcomings."
He added, "The Cypriot company built a portion of the breakwater, about 2 kilometers, before claiming that it lacked sufficient manpower. They cited security instability, terrorism, and other unfounded reasons for failing to complete the project."
Al-Husseini further explained, "The contract's terms violated legal procedures, as did other agreements signed by the Iraqi Ports Company."
He also pointed out that "another private company, in collusion with the legal director of the Iraqi Ports Company, imposed a $47 million fine on Iraq under equally unrealistic pretexts of the Ports Company’s alleged negligence."
Earlier, on September 9, a US court ruled that the Iraqi government and the Iraqi Ports Company must pay $120 million to the Cypriot firm Archirodon, which was contracted to build the breakwater at Al-Faw Port in Basra.
The ruling followed Archirodon's 2012 contract worth $265 million to construct the breakwater. The company struggled to recruit enough workers due to the rise of ISIS and the security situation in Iraq.
US Judge James Boasberg stated, "The foreign countries from which Archirodon sought labor discouraged or even prohibited their citizens from traveling to Iraq."
The judge further explained that the construction faced unexpected challenges, including the company's inability to hire adequate workers due to security concerns. Several countries restricted their workers from traveling to Iraq, and the Iraqi government feared local opposition in Basra over the use of heavy trucks on the Basra-Faw road, which could have led to protests. Additionally, the soil conditions outlined by the Iraqi Ports Company during the bidding process were inaccurate, delaying the project's completion.
Meanwhile, the Parliamentary Committee No. 160, tasked with investigating violations at Iraqi ports, announced that it needed more time after uncovering significant corruption suspicions. The committee also noted attempts to conceal documents that could hinder its work.
The committee has identified legal and administrative violations within Iraq’s maritime ports.
