Qatar Foundation secures legal victory in hospital construction dispute
Qatar Foundation (QF) has secured a significant legal victory as an International Chamber of Commerce's arbitration tribunal has ruled in its favour in a hospital construction dispute, awarding it approximately QR1 billion ($275 million)in compensation, with an award on costs to follow.
This follows on from an earlier ruling that confirmed that QF, a non-profit organisation based in Doha, lawfully terminated its contract with a joint venture (JV) of construction firmsfor the design and construction of Sidra Medicine.
The decisive win marks a momentous resolution to one of the region's longest running construction disputes.
A spokesperson for Qatar Foundation commented: 'Qatar Foundation welcomes the award issued by the International Chamber of Commerce, which further vindicates QF's position in this long-standing dispute and awards substantial compensation to QF. This award underscores QF's commitment to upholding the highest standards of project management and accountability.
'While we are pleased with the outcome, our primary focus remains on ensuring the continued success of Sidra Medicine in providing world-class healthcare to women and children in Qatar and the region. We acknowledge that this has been a complex and lengthy process. However, we believe that the outcome is a fair resolution that protects the interests of Qatar Foundation and the community we serve.'
Sidra Medicine is an academic healthcare and research institution dedicated to women, children, and young people. It uses clinical research to deliver personalized care especially for patients suffering from rare and genetic diseases in Qatar, the Middle East and Africa.
Qatar Foundation has confirmed that the full amount awarded of QR1 billion QAR ($275 million)will be reinvested into the Sidra Medicine endowment, allowing it to expand its services to its patients and the wider community.
QF had first contracted the JV in 2009 to design and construct Sidra Medicine. Due to defaults and delays, QF terminated its contract with the JV in 2014 and commenced arbitration proceedings against the JV. During the arbitration the JV made two unsuccessful applications in 2018 and 2019 to the High Court of England and Wales in relation to partial awards in QF's favour.
This latest ruling by the international body awards QFsubstantial compensation following on from previous awards on liability.
Qatar Foundation remains committed to partnering with international construction businesses on innovative projects that contribute to the development of Qatar and its knowledge-based economy.
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