Oman- Galfar wins RO23mn arbitration against Haya Water, shares jump 17%

2/21/2018 5:51:20 AM

(MENAFN- Muscat Daily) Muscat- Galfar Engineering and Contracting Company on Tuesday announced that it has won an arbitration award totaling over RO23mn against Haya Water regarding a dispute over Seeb sewage project.

In a disclosure to Muscat Securities market (MSM), Galfar said, 'We would like to inform our esteemed shareholders and investors that an arbitration award was issued in the second of the four arbitration proceedings between Galfar Engineering and Contracting SAOG (claimant) and Oman Wastewater Services Company SAOC / Haya Water (defendant) in respect of the disputed claims between the parties in Seeb sewage project contract-3'.

According to the disclosure, the award oblige Haya Water to pay total disputed sum of RO18.86mn along with RO4.25mn as interest, calculated at the rate of seven per cent per annum for the period between November 5, 2014 to February 15, 2018.

'The Arbitration award has decided in all disputed matters and the award obligated Haya Water to pay to Galfar all awarded amounts in a sum amounting RO18.86mn plus interest at a rate of seven per cent from the date of November 5, 2014 up to the date of award on February 15, 2018 which is equal to RO4.25mn', it said. The company further said, accordingly the awarded total amount is equal to RO23.11mn. The total amount would also subject to an interest at the rate of seven per cent from the date of award until full payment is received.

'This award covers the income recognised in the company's accounts', the disclosure said.

In its annual report of 2016 Galfar said, 'To protect the rights of the company we have initiated a number of arbitration cases'.

The news was particularly cheered by investors as its share price jumped over 17 per cent in a single trading session. Galfar shares jumped 17.11 per cent to close at RO0.89 per share on MSM.

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