Orascom Telecom Holdings SAE v. Republic of Chad, La Société des Télécommunications du Tchad and N.A. Citibank N.A. and International Bank for Reconstruction and Development European Investment Bank

Orascom Telecom Holding SAE (Orascom) (plaintiff) entered into a telecommunications joint venture with La Société de Télécommunications du Tchad (defendant), at the request of the Republic of Chad (defendant). After Orascom invested a substantial amount of money in the project, Chad issued a government decree that froze Orascom’s bank accounts and canceled its operating license, forcing Orascom out of the joint venture. Orascom commenced arbitration proceedings, and even though Chad was not a party to the joint venture agreements, Chad eventually accepted the arbitration panel’s jurisdiction over the nation and participated in the arbitration proceedings. The arbitral panel issued an award ordering Chad to pay Orascom approximately $3.7 million. Orascom filed an action in English court to enforce the unpaid arbitration award and, in particular, sought a third-party debt order with respect to money held in London by Citibank, N.A., on behalf of Chad. The money held in Citibank was related to a loan from the World Bank to Chad for construction of an oil pipeline. The revenues from Chad’s oil exportation would be held in Citibank and eventually repaid to the World Bank. The International Bank for Reconstruction and Development European Investment Bank intervened, claiming an interest in the funds held by Citibank. The court was asked to determine whether the account with Citibank was protected from execution by the State Immunity Act 1978.