Africa-Press – South-Sudan. Qatar National Bank (QNB) has formally petitioned a federal court in Washington, D.C., to enforce a $1 billion arbitration award against South Sudan and its central bank after years of missed payments and failed debt restructuring efforts.
In a detailed filing obtained by Sudans Post dated June 13, QNB asks the United States District Court for the District of Columbia to treat the international arbitration decision as if it were a final court judgment in the United States.
The request comes under the International Centre for Settlement of Investment Disputes (ICSID) Convention — a global treaty that ensures arbitration awards involving governments are binding and enforceable in member countries.
The roots of the dispute trace back to South Sudan’s early years of independence. According to the petition, soon after gaining statehood in 2011, South Sudan and its central bank — the Bank of South Sudan (BSS) — secured loans from QNB to finance vital imports needed to rebuild the war-torn country. The funds supported the purchase of food, farm supplies, medicines, building materials, and refined oil.
As the country slipped into a brutal civil war in late 2013, its oil production — the main source of national revenue — plunged dramatically. To keep the economy afloat, QNB extended more credit facilities, including a $250 million increase on top of the original arrangements.
By May 2015, however, South Sudan fell behind on payments. In an effort to avoid default, the parties renegotiated the debt in 2016 and again in 2018. The final deal, known as the Facility Agreement, involved a $700 million term loan designed to refinance existing obligations and spread repayment over 15 years, starting March 31, 2019.
South Sudan requested the full $700 million through a formal drawdown and received roughly $659.8 million from QNB in February 2019. But within months, the government missed the very first repayment due that March, triggering a chain of notices and demands from the bank.
QNB filed for arbitration in September 2020 under the agreed ICSID process. A three-member arbitration panel was appointed, consisting of Dr. Ucheora Onwuamaegbu as president, Peter Rees KC for QNB, and Professor Hélène Ruiz Fabri for South Sudan.
After hearings in London in January 2023, the tribunal rejected all of South Sudan’s jurisdictional objections and ruled in January 2024 that both the government and the central bank had breached the loan agreement. A final award was issued in May 2024.
According to the award, South Sudan and BSS are jointly responsible for paying QNB more than $1.02 billion, which includes $659.8 million in unpaid principal, $432.3 million in accrued interest, a $300,000 management fee, and minus repayments of about $71.1 million.
The government is also liable for post-award interest at a rate tied to the LIBOR benchmark plus additional percentage points, and must cover QNB’s legal costs worth £999,329.78 and arbitration expenses estimated at $266,427.68.
Despite these rulings, QNB claims, South Sudan has not made any payment nor sought to cancel or pause enforcement of the award under the ICSID Convention.
In its filing, QNB argues that under U.S. law and the ICSID Convention, the arbitration decision must be enforced “like a final court judgment” — without re-examining the merits or the original contract. The bank says South Sudan waived any sovereign immunity that might block enforcement, both by contract and by signing the ICSID Convention.
“This Court is not permitted to re-litigate the arbitration; its role is solely to confirm the award and enforce payment,” QNB’s lawyers wrote. The petition requests the court to enter a judgment for the full amount plus interest and legal costs.
Counsel for Qatar National Bank in this action includes Floriane Lavaud, Jovana Crncevic, and Alexander Haden of Withers Bergman LLP in New York. Representatives for South Sudan, including the Minister of Foreign Affairs and the Governor of the Bank of South Sudan, have not yet filed a response.
For More News And Analysis About South-Sudan Follow Africa-Press
