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italaw180987 - Machado v. Angola, Claimant’s Reply, May 21, 2026

21 May 2026
Ricardo Filomeno Duarte Ventura Leitão Machado v. Republic of Angola, ICSID Case No. ARB/24/8
Document provided by: ICSID
Claimant’s Reply
Document Details:
LISTED PARTICIPANTS
Claimant’s Reply
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Claimant appointee
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Tribunal/Panel chair
Arbitrator(s)
Sole Arbitrator
ICSID Annulment Committee president
ICSID Annulment Committee members
WTO Appellate Body members
WTO Appellate Body chair
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Claimant's law firm
Respondent's counsel
Respondent's law firm
Other counsel
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Respondent's expert
Respondent's expert firm
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Document Summary
Claimant’s Reply
This summary note is machine-generated. Always consult the original materials.

This document is the Claimant's Reply to the Respondent's Statement of Defence in an ICSID arbitration concerning the alleged unlawful expropriation of four gas turbines. The Reply systematically rebuts the Republic of Angola's objections to the Tribunal's jurisdiction, the Claimant's standing, and the merits of the claims, while also addressing defences related to contributory fault and quantum.

Jurisdictional Objections

The Claimant counters Angola's jurisdictional challenges on multiple grounds. Regarding jurisdiction ratione materiae, the Claimant argues that the four turbines constitute a protected investment under the Angola-Portugal BIT and the ICSID Convention. The Reply contends that the 'Salini test' is either inapplicable or, in the alternative, satisfied, as the investment involved a substantial contribution, duration, and assumption of risk by the Claimant's company, Aenergy. The Claimant refutes Angola's allegations of fraud by arguing that the investment was established legitimately before the alleged fraudulent acts occurred, rendering the objection chronologically and legally irrelevant. The Claimant asserts that Aenergy was a genuine distributor that purchased the turbines with its own funds, not a mere intermediary.

On jurisdiction ratione temporis, the Claimant maintains that the dispute arises from acts that occurred after the BIT's entry into force. The Reply posits that the expropriation was consummated not by any pre-BIT events, but by the post-BIT installation and connection of the turbines to Angola's national power grid in 2022. The Claimant rejects Angola's interpretation of the BIT's temporal clause as a 'double-exclusion' clause, arguing that the claim is founded on independently actionable post-BIT conduct.

Standing and Merits

The Claimant reaffirms his standing to bring direct claims for breaches of expropriation, fair and equitable treatment (FET), and full protection and security (FPS) standards in relation to the turbines, which are assets of his wholly-owned company. The Claimant argues that Article 7(4) of the BIT expressly extends protection to the assets of a company in which an investor holds a participation, thereby providing a basis for direct claims beyond expropriation.

On the merits, the Reply characterizes Angola's actions as an unlawful expropriation, not a temporary or reversible custodial measure. The Claimant argues that the installation and continuous operation of the turbines constitute a permanent taking that has rendered their return in their original condition impossible. The expropriation is alleged to be unlawful for failing to serve a public purpose, being effected without due process, and lacking prompt, adequate, and effective compensation. The Claimant further details how the conduct of Angolan state entities (IGAPE, PRODEL) and the prolonged inaction of the Provincial Court of Luanda breached the FET and FPS standards by frustrating legitimate expectations, denying due process and transparency, and constituting arbitrary acts.

Damages and Relief Sought

Finally, the Claimant refutes Angola's defence of contributory fault, arguing there is no causal link between the alleged conduct of the Claimant and the sovereign decision by Angola to appropriate the assets. The Reply also defends the Claimant's damages valuation, asserting that the methodology is appropriate and substantiated. The Claimant requests the Tribunal to declare Angola's breaches of the BIT and to award full compensation for the fair market value of the expropriated turbines, plus interest and costs.