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Ecomed claims $ 75 million in Morocco and threatens to seize ICSID

Through its parent company, former CEO of Médiouna threatens landfills against Morocco in front of ICSID and demanding $ 75 million in compensation.

The file of the depots Médiouna (Casablanca) is likely to be exported to Washington. Ecomed company wasted Casablanca waste management threatens Morocco Morocco with an appeal against ICSID, an arbitration linked to the World Bank.

In this regard, a statement was sent on 12 June to several Moroccan departments, including the Head of State, the Interior Ministry, the Ministry of Economy and the Ministry of Foreign Affairs.

The authors of the letter are Edgeboro and GESI . These two American companies were behind the creation of Ecomed's Joint Venture 2008, during which year it was a delegated management agreement for managing solid waste disposal sites in Casablanca.

"The contract gives Ecomed an exclusive right to exploit existing Mediouna landfills during a transitional period, then carry out rehabilitation work on site and to design, finance, contract and run a new landfill in Casablanca. At a site of 82 hectares," it recalls in the document .

However, "from the start of the contract, the city of Casablanca has not kept its promises, despite Ecomed's efforts under the direction of investors to fulfill their contractual obligations". Therefore, the dispute, the company attributable to the Kingdom of Morocco, "violation of contractual obligations" committed by the municipality of Casablanca.

In total, Edgeboro and GESI estimate $ 75 million "diverse losses" resulting from these "violations". An amount they intend to claim compensation before the ICSID. They are accompanied by Hogan Lovells, a US law firm with a global call.

Ecomed accuses the city of not leaving the country to develop the new landfill

Specifically blaming Ecomed City Casablanca has failed to "the essential contractual obligation" to give him "land to develop the city's new landfill ". At that time, the finding was that the largest landfill (Mediouna) "already served the city's needs in waste management" notes the plaintiffs.

Thus, the contract with Ecomed City signed to transfer to the contractor "82 hectares of land" and this "on the date of entry into force of the contract (17 November 2008)". The agreement also included a short transitional period of two years for the head "to establish a new depot on site and to stop operations" by Mediounas.

"Instead, the city forced Ecomed to accept contractual changes, extending the transition period from 2 years originally planned for ten years," complains the company. In addition, the site offered "only 35 hectares, less than half of the 82 hectare area promised under the contract," reads the letter.

Ecomed therefore considers that it has been "compelled" to spend a longer time running a "poorly designed and aging" landfill. Knowing that the delay in the closure of Mediouna landfill has led to deterioration of the landfill's environmental and sanitary conditions. "

"The Ragmen at Médiouna"

The Ecomed-city convention called for the latter "to execute its police force to evacuate the cattle and humans from the existing Mediouna landfill site before delivering the property to Ecomed, and to ensure safety because the site is not damaged ". such an infringement of the term of the contract. "According to the letter, this other contractual obligation was not respected by the authorities in the economic capital, which did not" succeed in ensuring the security of the site. "

" Many deterrers had to stay in place, which directly affects Ecomed's ability to perform his duties , including the creation of a designated sorting facility, resulting in violent acts and fires caused by ragpickers on landfills, "I complain former debtors

Unpaid costs

Ecomed claims that he" has been the advantage of his investments " and the city has repeatedly "refused to pay him the fees under the contract." For example, the company quotes a "218 MDH amount for services rendered." This adds "unpaid fees" including "the amount spent on work on the former Mediouna landfill, including the additional costs of Ecomed and its inves Terare has caused due to the city's inability to maintain safety at the time of dumping. "

Possible interruptions in the agreement

In addition to all these" failures ", Ecomed accuses its co-operative of terminating" arbitrary "and" illegal "delegated management agreement.

The letter reminds the city of April 5 2018 had originally requested Ecomed to initiate discussions to terminate the agreement before unilaterally continuing "unilaterally" with its cessation.

On May 31, 2018, the City Council thus sent a letter of termination to Ecomed and announced its intention to terminate the agreement in advance without compensation for Ecomed or for investors. "A behavior they interpret as" an expropriation ".

In addition, the municipality also initiated judicial proceedings before the court in Casablanca to take over [elle ou une autre société] discharge. What was granted to him by an order compiled on 7 June 2018 was performed this week with the temporary imputation of the liability of the company SOS-Ndd.

A friendly deal still possible

"Ecomed has always tried to solve these problems with the city in recent years to fulfill its contractual obligations and implement the contract, but in no way" regrets Edgeboro and GESI. They criticize Morocco for failing to deal with its "equitable investment", especially the "Free Trade Agreement between the United States and the Kingdom", dated June 15, 2004.

The day of the letter was written (June 12), the two American companies "Hopefully" was still a friendly agreement with Morocco, and this before "any legal procedure". However, they had announced that "if negotiations and consultations between them and Morocco" are insufficient "they would submit" a request for arbitration "to the ICSID.

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