Walk like an Egyptian

"... Last week, Tanzanian MPs approved a new law that denies foreign firms operating in the country the right to seek international arbitration should a dispute arise between them and the government over mining and power generation agreements.

According to the Natural Wealth and Resources (Permanent Sovereignty) Act, which is expected to be accented by President Magufuli any time, all disputes will henceforth be resolved through existing local dispute resolution mechanisms or courts within Tanzania.

A similar decision to reject international arbitration scuttled Egypt’s photovoltaic (PV) solar development programme ... In May 2016 the decision taken by the Egyptian Electricity Transmission Company (EETC) led to an exodus of international developers and lenders who insisted on a neutral arbitration venue outside Egypt.

The government finally gave in to pressure in the last quarter of 2016 and amended the terms of future rounds. Yet final project agreements were delayed for months, and many foreign developers opted to abandon their projects altogether ..."

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