Dominican Republic Prevails in PCA Arbitration Against French Investor Yves Martine Garnier
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TL;DR
- PCA tribunal dismissed all claims by French investor Garnier.
- Dispute concerned termination of a US$100 million concession contract in Santo Domingo Este.
- Arbitration was based on the France-Dominican Republic investment treaty.
- Dominican Republic found to have acted lawfully; no compensation awarded.
Overview
On August 19, 2026, the Permanent Court of Arbitration ruled in favor of the Dominican Republic in an investment arbitration filed by French investor Yves Martine Garnier. Garnier's claims, exceeding US$100 million, related to the termination of a concession contract for solid waste management by EGTT Dominicana in Santo Domingo Este. The tribunal found the termination was valid under Dominican law and dismissed all claims under the France-Dominican Republic bilateral investment treaty.
What Happened
On August 19, 2026, the Permanent Court of Arbitration (PCA) issued an award dismissing all claims brought by French investor Yves Martine Garnier against the Dominican Republic.
Garnier, through his company EGTT Dominicana, sought over US$100 million in damages after the municipal government of Santo Domingo Este terminated a concession contract for solid waste management.
The arbitration was initiated on October 4, 2021, under the 1999 France-Dominican Republic bilateral investment treaty.
The tribunal found the concession's termination was proper under Dominican law, citing deficiencies by EGTT Dominicana in service provision.
The tribunal also found no breach of the Dominican Republic's obligations under the investment treaty.
The Dominican Republic's legal defense was coordinated by the Ministry of Industry, Commerce and MSMEs, the Santo Domingo Este municipal government, and the Ministry of Justice, supported by Foley Hoag LLP.
Context
The arbitration arose from the 1999 agreement between France and the Dominican Republic covering the promotion and protection of investments.
The case was administered by the Permanent Court of Arbitration under UNCITRAL Rules.
The Dominican Ministry of Industry, Commerce and MSMEs highlighted the country's active policy to contest non-meritorious claims and protect public resources.
Why It Matters
- Confirms the ability of the Dominican Republic to defend itself against large investor claims under bilateral investment treaties.
- Clarifies enforceability standards for service-based concessions and government contract terminations under international investment law.
- May have positive implications for legal certainty and the investment climate in the Dominican Republic.
- Demonstrates procedural adherence under PCA-administered UNCITRAL Arbitration Rules.