The Femern project is in the midst of an arbitration case between the client Femern A/S and the contractor consortium Femern Link Contractors. The dispute concerns delays and additional costs during the coronavirus pandemic, and the contractor is claiming 77 million euros, equivalent to around 570 million kroner.
The conflict stems from the coronavirus epidemic, where lockdowns and travel restrictions limited work on the enormous construction. The contractor believes it caused significant delays and increased costs, while Femern A/S denies that the contract entitles compensation.
The case is therefore initially referred to the joint Dispute Resolution Board - an independent panel used by the parties to resolve conflicts along the way.
Contractor wins first battle
DRB issues its recommendation on 29 March 2024. The contractor is partially upheld and awarded compensation of 56 million euros (approximately 417 million kroner), but the decision is not binding, and Femern A/S chooses to let the case proceed.
At the beginning of 2025, the case is officially brought before the International Chamber of Commerce, ICC. On 4 February 2025, an initial meeting is held in the arbitration court, where the framework for the case is established and a judge is appointed. On 28 May 2025, Femern A/S submits its writ, and the case is currently under consideration.
The corona case on the Femern project
2020-2021: The corona pandemic hits the project, and the contractor begins to gather documentation for delays and additional expenses.
29 March 2024: DRB issues its recommendation - the contractor is partially upheld and awarded 56 million euros.
4 February 2025: ICC holds an initial meeting in the case and appoints a judge.
28 May 2025: Femern A/S submits its complaint to the ICC.
July 2025: The arbitration case is underway, and the parties have exchanged the first documents.
According to Hans Viggo Godsk Pedersen, professor of private law at the University of Southern Denmark, the first decision is unlikely to have greater significance in the upcoming arbitration.
- The decision that has been made is not binding, and it is obvious that one can disagree with it. Therefore, it must be tested again, he says.
He adds that it is unlikely to play any major role that the case is being conducted internationally at the ICC.
- It is natural to choose international arbitration in a case with parties from several countries, he says.
The case at the ICC comes at a time when several parts of the work on the Fehmarn project are challenged. The tunnel trench is still not approved, and the specially built vessels Ivy 1 and Ivy 2 still lack final approval.
Neither Femern A/S nor Femern Link Contractors wish to comment on the case.
