Kajima ordered to pay $48m to three other Japanese companies over Algerian fallout

Bordj Bou Arreridj (Sofiane Khoudour/Dreamstime)
Japanese contractor Kajima has been ordered to pay restitution of $48m to three fellow Japanese companies over an unfinished 400km section of Algeria’s East-West Highway.

The road, which was due to link the northern city of Bordj Bou Arreridj to the Tunisian border, was awarded in 2006 to the Cojaal consortium, which included the Hazama Ando Corporation, Nishimatsu Construction and Taisei

According to the Roadtraffic Technology website, was the work was the longest section of the road, and included 190 bridges and viaducts and five tunnels.

A statement from Kajima said the $48m ruling from the Japan Commercial Arbitration Association only upholds a portion of the compensation claims and represents a distribution of the surplus funds rather than “damage arising from Kajima’s breach of duty”.

Kajima added that the payment would have a minor impact on its financials, so it would not change its 2022 fiscal results announced on 9 November.

Nikkei Asia reports that the project was shelved following the failure of the developer to make payments.

The Japanese companies reached an agreement with Algerian authorities in 2016. 

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