• Source of authority for granting interest

• Rate of interest

The sole arbitrator awards Claimant the bonus to which it argues it is entitled as part of the construction project undertaken pursuant to an agreement with Respondent, subject to the General Conditions of Contract for Works of Civil Engineering (FIDIC Conditions). Although the parties initially submitted that interest should be payable at a rate of 12.5%, the arbitrator pointed out that such rate, although appropriate for domestic currency, could appear unduly onerous for US dollars. The parties therefore agreed to give the arbitrator the power to decide this issue.

'There is also the question of the claim for interest. Though both Counsel initially agreed that the rate of interest should be 12.5 % (which is the rate applicable locally) it was subsequently agreed by them that the question of the rate of interest be fixed by the Arbitrator. Considering the fact that this award is in US dollars, the determination of interest at 12.5% appears to me to be excessive and that the earlier agreement by Counsel was due to a misconception. Interest paid by the banks on dollar accounts being in the region of 5%, I determine that the Claimant will be entitled to interest on the award of . . . at 5% per annum from the 20th of February 1997, the date of last payment, till payment in full.'