Galfar associate informs about arbitration decision

Muscat: Galfar Engineering’s associate company, International Water Treatment (IWT), has informed about an arbitration decision in arbitration proceedings with Muscat City Desalination Company.
Galfar Engineering and Contracting Company has 30 per cent shareholding in International Water Treatment, along with the shares held by other partners -Cadagua (Spain) and Wabag (India), according to a disclosure statement posted on MSM website.
The arbitration court rejected the claim from IWT to not apply liquidated damages clause and the likely net impact on IWT is $21 million. IWT is now studying the contractual obligations between the parties and the company and will inform about any financial impact later.
This award issued by the London Court of International Arbitration is related to the engineering, procurement and construction contract for water desalination project at Al Ghubrah which has been completed, passed the performance test and is in operation by the client.