Mabco Constructions SA prevails in ICSID investment arbitration against the Republic of Kosovo
14. January 2025
Mabco Constructions SA, a leading Swiss-based construction company with international operations, has successfully secured a favorable award in an investment arbitration dispute against the Republic of Kosovo. The arbitration was administered by the International Centre for Settlement of Investment Disputes (ICSID) in Washington, DC.
The dispute arose from the failed privatization of the Grand Hotel, a landmark hospitality establishment in the center of Prishtina, Kosovo. Mabco Constructions SA, after financially contributing to the privatization of the Grand Hotel, was subsequently deprived of its stake in the project and the associated investment. In response, the company initiated arbitration proceedings in early 2017 under the bilateral investment treaty (BIT) between Switzerland and Kosovo, seeking compensation along with applicable interest and costs.
The Tribunal ruled entirely in favor of Mabco Constructions SA. In October 2020, the Tribunal had, by majority, upheld jurisdiction over the claims.
The team at Bratschi consisted of Sandra De Vito, Elisa Aliotta and Sami Salihu.
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