A HK company concluded an agreement, according to the Egyptian 1974 Law No. 43, with Egypt in relation to the development of two international tourist complexes in Egypt. The agreement was signed by the Minister of Tourism and next to his signature appeared ‘approved, agreed and ratified by the Minister of Tourism’. The agreement referred to arbitration under ICC. A second statement was signed in which it was said that the agreement was subject to the approval of the competent authorities. After an investment of $5 million the project was cancelled by presidential decree because of the Egyptian Assembly’s opposition.
Under ICC arbitration the HK company was awarded $12.5 million damages 11-III-83. Egypt appealed the ICC award to the Court of appeals in Paris, arguing the he never consented arbitration so the award was null, in further appeal the Court the Cassation said that Egypt had not consented to submit the dispute to the ICC 6-II-87.
Meanwhile, 24-VIII-84 the company have asked ICSID under art 8 of law No. 43 ‘investment disputes shall be settled… within ICSID’. ICSID awarded $27.6 million