Dispute over performance of an EPC contract

Kosta Legal has successfully upheld the interests of an EPC contractor in a dispute regarding implementation of a turnkey project for the construction of a cement factory.

Quality of performance was challenged and misallocation of financing alleged and thus termination of the contract was threatened. Our lawyers successfully dealt with peculiarities of the matter, including the involvement of multiple parties, the channelling of money through several lending instruments and the change of contractors in the middle of the project. Extensive negotiations were required to settle the dispute at its early stage with the aid of independent experts.

Our client was a Chinese engineering company contracted by an Uzbek entity for the construction of a cement-producing plant with a capacity of 500–700 tons per day in the Samarkand region of Uzbekistan. The project was financed by the China Development Bank, providing its funds as a special purpose loan to an engaged Uzbek bank, redirecting the funds for financing local projects with Chinese participation.