KentKart seeking international arbitration against Serbia regarding public transport fare collection in Belgrade

Source: Beta Wednesday, 24.04.2024. 13:26
Illustration (Photo:
The Turkish company KentKart has filed the request for the initiation of an international arbitration procedure against Serbia regarding the service of public transport fare collection, Nova Ekonomija reports today. On April 1 this year, the International Center for Settlement of Investment Disputes (ICSID) registered the request of KentKart for the initiation of the arbitration procedure, which is in progress.

In this case, Serbia will be represented by the Ministry of Foreign Affairs, the Ministry of Economy and the State Attorney’s Office.

Last year, the City of Belgrade unilaterally terminated the contract with KentKart Southeast Europe, which did public transport fare collection in Belgrade.

The city terminated the contract signed in 2021 for a period of 13 years and founded the public enterprise Naplata prevozne usluge.

Due to the termination of the contract, the Turkish KentKart Global sent the notification about the intention to initiate the procedure to the republic organs of Serbia on March 20, 2023.

As Nova Ekonomija writes, Serbia and Turkey have a bilateral agreement on the protection of foreign investments, which envisages for the foreign investor to notify the competent organs of the violation of a contract, should it occur.

Within a six-month period, through negotiations and consultations, the parties to the dispute should try to find a peaceful solution, before starting an international arbitration.

KentKart Global, with the headquarters in Turkey, is the majority owner of the company KentKart Southeast Europe, which provided the public transport fare collection service in Belgrade for years.

Your comment
Full information is available only to commercial users-subscribers and it is necessary to log in.

Forgot your password? Click here HERE

For free test use, click HERE

Follow the news, tenders, grants, legal regulations and reports on our portal.
Registracija na eKapiji vam omogućava pristup potpunim informacijama i dnevnom biltenu
Naš dnevni ekonomski bilten će stizati na vašu mejl adresu krajem svakog radnog dana. Bilteni su personalizovani prema interesovanjima svakog korisnika zasebno, uz konsultacije sa našim ekspertima.