Africa: arbitration round-up 2011 | Practical Law

Africa: arbitration round-up 2011 | Practical Law

An article highlighting the key arbitration-related developments in Africa in 2011.

Africa: arbitration round-up 2011

Practical Law UK Articles 5-517-6440 (Approx. 3 pages)

Africa: arbitration round-up 2011

by Kamal Shah (Partner), Stephenson Harwood
Published on 02 Feb 2012Africa
An article highlighting the key arbitration-related developments in Africa in 2011.

LCIA opens arbitration centre in Mauritius

On 28 July 2011, the new LCIA-MIAC (Mauritius International Arbitration Centre) opened, forming part of the LCIA's project to work in overseas jurisdictions to establish centres of excellence for arbitration (see Legal update, LCIA opens new arbitration centre in Mauritius).
It followed the joint venture project in 2008 with the Dubai International Finance Centre (DIFC) to create DIFC-LCIA and the establishment of LCIA India in 2009. LCIA-MIAC has now begun work on drafting the arbitration and mediation rules for the centre and setting up the administration.

Tanzania High Court dismissed petition to set aside US$65 million ICC award

On 28 September 2011, the High Court of Tanzania dismissed a petition to set aside an ICC arbitration award on the grounds of excess of jurisdiction, public policy and misconduct due to alleged errors of fact and law on the face of the record (see Legal update, Tanzanian High Court dismisses petition to set aside ICC arbitration award). The High Court's decision was partly based on the principle that where specific questions of fact and law have been referred to an arbitral tribunal for consideration and decision, the supervising court cannot interfere with the decisions of the arbitral tribunal, even if the court takes a different view of the law.
The underlying dispute concerned the validity and enforceability of an emergency power off-take agreement, with the state owned company, Tanzania Electric Supply Co Ltd (TANESCO), which had been assigned to Dowans Holdings SA and then to Dowans Tanzania Ltd (together, Dowans).
In the ensuing arbitration, the tribunal issued a US$65 million award in favour of Dowans which Dowans sought to enforce in the English courts. On 9 February 2011, TANESCO applied to the Tanzanian courts to set aside the award, which Dowans opposed.
In deciding the case, Mushi J declared that he was satisfied that all the questions of fact and law raised in the petition had been put to the arbitral tribunal in the Terms of Reference. Accordingly, Mushi J declared that it was not proper for the High Court of Tanzania to interfere with the findings of the tribunal and therefore dismissed the application.