Cameroon ordered to pay €78.5 million in Olembe stadium arbitration

The International Centre for Settlement of Investment Disputes (ICSID) has ordered the state of Cameroon to pay approximately €78.5 million (over 50 billion FCFA) to the Italian construction group Gruppo Officine Piccini.

The ruling stems from a dispute originating in November 2019 following the termination of Piccini’s contract to build the Olembe sports complex in Yaoundé. The tribunal found that the state had engaged in illegal expropriation and failed to provide the contractor with ‘just and equitable treatment.’

The total compensation includes €51.3 million for net investment, €5.4 million for lost profits, €8.1 million for loss of use of equipment, €7.7 million for equipment value decline, and €6 million for post-expropriation expenses. Additionally, Cameroon is required to cover 70% of Piccini’s legal fees and arbitration costs. While the award is significant, it remains below the €188.7 million in material damages initially sought by the Italian firm.

Cameroon authorities have expressed their intention to contest the decision, potentially pursuing further legal action through the International Chamber of Commerce in Paris.