Cameroun: CIRDI Orders 50 Milliards FCFA Payment to Piccini

• The State of Cameroon has been ordered by the CIRDI to pay approximately 50 billion FCFA (78.5 million euros) to the construction firm Piccini.
• This condemnation stems from findings of illegal expropriation and a lack of fair and equitable treatment towards Piccini.
• The dispute originated from Piccini's eviction from the Olembe stadium construction site in 2019.
• The award, issued on September 4, 2026, includes 17 billion FCFA for principal damages and 35 billion FCFA for procedural costs.
• The final amount is significantly lower than the 250-300 billion FCFA initially claimed by Piccini.

The tribunal's decision, rendered on September 4, 2026, found Cameroon liable for both illegal expropriation and a failure to provide fair and equitable treatment to the contractor.

The International Centre for Settlement of Investment Disputes (CIRDI), a Washington-based arbitral body, has issued a significant ruling against the State of Cameroon, ordering it to compensate the Italian construction firm Piccini. This ICSID award mandates a payment totaling just over 50 milliards FCFA, equivalent to approximately 78.5 million euros, resolving a protracted dispute stemming from the Olembe stadium project. The tribunal's decision, rendered on September 4, 2026, found Cameroon liable for both illegal expropriation and a failure to provide fair and equitable treatment to the contractor.

This condemnation of the État du Cameroun Piccini marks a critical juncture in the legal saga surrounding the construction of the Olembe sports complex. The arbitral panel concluded that the state's actions, specifically the eviction of Piccini from the construction site in 2019, constituted a breach of its obligations towards the investor. The ruling underscores the potential liabilities governments face when intervening in major infrastructure projects involving foreign investment.

The financial judgment against Cameroon is meticulously broken down into two primary components. A sum of 17 milliards FCFA has been allocated to cover principal damages, which notably includes compensation for equipment left behind by Piccini at the Olembe stadium site following its removal from the project. Additionally, a substantial 35 milliards FCFA was awarded to account for the various procedural costs that accumulated throughout the years of litigation.

This final figure of slightly more than 50 milliards FCFA represents a significant reduction from the initial demands made by Piccini. Earlier reports and local media speculation had suggested claims ranging from 250 to 300 milliards FCFA, reflecting the company's original assessment of its losses. However, the CIRDI arbitration panel, after careful deliberation, substantially scaled back these initial requirements in its early September 2026 award, focusing on the direct consequences of the illegal expropriation and the lack of "traitement juste et équitable" afforded to the investor.

The resolution of this long-standing investment dispute, centered on the Yaoundé sports complex, concludes a judicial chapter that has drawn considerable attention. The CIRDI arbitrage Olembe expropriation case highlights the complexities inherent in large-scale public works and foreign investment, particularly when government actions lead to project disruptions. This ICSID award Cameroon Piccini sets a precedent for how similar litige investissement cases might be adjudicated in the region, emphasizing the importance of adhering to international investment protection standards.

Throughout the proceedings, the State of Cameroon was represented by a diverse legal team comprising high-ranking officials and legal experts. This team included Jean Claude AWANA, an advisor to the Supreme Court; Emmanuel PENSY, an attorney; Dr. Rodrigue Ngando Sandje, who heads the litigation unit at the Ministry of Sports; Dr. Gaston Kenfack Douajni, the Director of Legislation at the Ministry of Justice; and M. Benoît Placide MEVOUA, who leads the legal affairs division at the Ministry of Finance. Their collective efforts aimed to defend the state against Piccini's claims, ultimately leading to the current condemnation.

This ICSID award against Cameroon for illegal expropriation and breach of fair and equitable treatment sets a significant precedent for investor-state disputes in the region. Lawyers advising foreign investors in Cameroon should note the tribunal's stance on government actions impacting infrastructure projects, while those representing the state must assess their exposure to similar claims and review investment protection obligations.

Source: Original reporting via Actu Cameroun