Mozambique won a dispute against the Indian company Patel Engineering Ltd (PEL) at the United Nations Permanent Court of Arbitration, seeking a payment of 100 million dollars.
The facts of this case date back to 2011, when PEL and the Mozambican government signed a Memorandum of Understanding on a potential rail-port project to link the Moatize region in Tete to a new deep-water port in Macuse, Zambezia province.
As a result, PEL took part in a public tender in 2013, but didn't win. So far, the project has not come to fruition.
A note from the Mozambican Attorney General's Office states that the court concluded that it did not have jurisdiction because PEL's actions in Mozambique were limited to pre-investment activity, and it did not make any investments in the country under the Bilateral Investment Treaty between Mozambique and India. (News)
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