Klagsblad to be Israeli arbitrator in EAPC arbitration

Iran is demanding Israel pay $2 billion for Iran’s share in the Eilat-Ashkelon Pipeline Co.

Sources inform “Globes” that Adv. Avigdor (Dori) Klagsblad will replace the late Adv. Haim Zadok as Israel’s arbitrator in the Eilat-Ashkelon Pipeline Co. (EAPC) arbitration case. Israel and Iran are in arbitration over Iran’s share in the government-owned EAPC. Klagsblad will join the Swiss and Iranian arbitrators, who have been working on the case for years without reaching a settlement.

Prime Minister Ariel Sharon and Minister of Finance Silvan Shalom appointed Klagsblad in October 2002. The appointment was kept confidential, as are other matters relating to the case.

The Israeli arbitrator’s fee is believed to be 600 Swiss francs an hour. The position is not filled by tender, since it is a position of trust. However, offers from several candidates are normally taken to fill the position. It is not clear if this was done in this case.

The EAPC arbitration case has been pending since 1984, with long hiatuses of several years each. Iran is demanding at least $2 billion from Israel, on the grounds that its shares in EAPC have become dormant since Iran severed diplomatic relations with Israel in 1979.

Published by Globes [online] - www.globes.co.il - on January 13, 2003

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