HLA Successfully Represents ERA in ETB 227 Million Commercial Arbitration Award

The dispute arose from a conditional advance payment bond issued by Nile Insurance S.C. on behalf of DMC Construction in connection with the Pawi Junction–Guba Road Project (Contract 2). Following contractual disputes concerning the recovery of advance payments, ERA engaged HLA to enforce the conditional advance payment guarantee.

The arbitration proceedings concerned the validity and enforceability of ERA’s call on the advance payment bond. HLA represented ERA throughout the proceedings and advanced its position on the contractual and legal basis for enforcing the guarantee.

The tribunal ultimately ruled in favor of ERA, affirming the validity of the call on the advance payment bond and ordering Nile Insurance S.C. to honor its contractual obligation up to the full guaranteed amount of ETB 227 million.

The matter adds to HLA’s experience in handling complex commercial disputes involving construction contracts, advance payment guarantees, performance bonds, insurance obligations, and public infrastructure projects.

HLA continues to advise and represent clients in significant commercial and construction-related disputes before arbitral tribunals and courts in Ethiopia.