Victory for Eurotunnel in Sangatte compensation case
26-02-2007
Channel tunnel operator Eurotunnel is set to be compensated by the governments of France and Britain after successfully claiming that the Sangatte refugee camp disrupted its business operations.
The permanent court of arbitration in The Hague has ruled that Paris and London failed to ensure security at the refugee camp was high enough to prevent disturbances to Eurotunnel's nearby Calais terminal between 2000 and 2002.
Sangatte, a Red Cross-run camp, was closed permanently five years ago amid criticism it was serving as a centre for illegal immigration into Britain from the continent.
A statement from Eurotunnel today announced the court's decision, saying: "The tribunal concludes that the concessionaires have the right to be compensated for losses which result from the states defaulting on their responsibilities as those who have granted the concession.
"The tribunal must now set a timetable for the second phase of the procedure to determine the amount of loss and its compensation."
In 2004 Eurotunnel estimated that it had incurred £17 million worth of additional security costs and £13 million in lost revenues directly due to Sangatte.
The operator now says that the overall cost is likely to be more than £35 million.