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IDCZ revives US$62m claim bid

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The Industrial Development Corporation of Zimbabwe Limited has revived its bid to claim US$62 million from the Romanian government as compensation for a failed joint sheet glass manufacturing project with the latter’s former state-owned enterprise, Romsit.The IDCZ’s claim is based on the 1999 determination by the Paris-based International Court of Arbitration that Romsit SA pays the US$4 211 750 for failure to comply with the terms of the contract. The amount has now ballooned to US$9 090 933 with interest.

The IDCZ has also demanded for a further compensation for the “expropriation of IDC’s rights” from the Romanian government through the International Court for the Settlement of Investment Disputes resulting in the claim of US$62 million.

IDCZ spokesperson Mr Derick Sibanda said they were hopeful that after years of failing to secure compensation the Romanian government would finally comply with the International Court of Arbitration’s determination.

“It is not contestable and that as a member of the European Union, the Romanian government should respect the international trade regulations,” he said.

“The IDCZ has been greatly prejudiced by the non-performance of the Romanian contractor, (Romsit) and because of this failure a sheet glass making plant is lying idle in Kadoma and hundreds of jobs were lost.”

He said Zimbabwe was presently importing all its sheet glass while such a plant  exists.
“The amount paid in damages could be utilised for rehabilitating the glass plant as well as implementing the numerous Greenfield projects which the IDC is currently pursuing,” said Mr Sibanda.

The IDCZ has previously demanded compensation from Romsit itself but all efforts has been in vain as the company has since been privatised with the new owners refusing to pay saying when the project failed Romsit was still state-owned and so the Romanian government has to meet the obligations.

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