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1. the Channel Tunnel Group Limited 2. France-Manche S.A

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1. the Channel Tunnel Group Limited 2. France-Manche S.A IN THE MATTER OF AN ARBITRATION BEFORE A TRIBUNAL CONSTITUTED IN ACCORDANCE WITH ARTICLE 19 OF THE TREATY BETWEEN THE FRENCH REPUBLIC AND THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND CONCERNING THE CONSTRUCTION AND OPERATION BY PRIVATE CONCESSIONAIRES OF A CHANNEL FIXED LINK SIGNED AT CANTERBURY ON 12 FEBRUARY 1986 - BETWEEN - 1. THE CHANNEL TUNNEL GROUP LIMITED 2. FRANCE-MANCHE S.A. - AND - 1. THE SECRETARY OF STATE FOR TRANSPORT OF THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND 2. LE MINISTRE DE L’ÉQUIPEMENT, DES TRANSPORTS, DE L’AMÉNAGEMENT DU TERRITOIRE, DU TOURISME ET DE LA MER DU GOUVERNEMENT DE LA RÉPUBLIQUE FRANÇAISE PARTIAL AWARD The Arbitral Tribunal: Professor James Crawford SC, Chairman Maître L. Yves Fortier CC QC H.E. Judge Gilbert Guillaume The Rt. Hon. Lord Millett Mr Jan Paulsson Registry: Permanent Court of Arbitration 30 January 2007 AGENTS, COUNSEL AND OTHER REPRESENTATIVES OF THE PARTIES Eurotunnel France Mr Matthew Weiniger, Herbert Smith LLP, Mr Jean-Luc Florent, Deputy Legal Director at Agent, Counsel and Advocate; the Ministry of Foreign Affairs, Agent; Professor Christopher Greenwood, CMG, QC, Mr Alain Pellet, Professor at the University of Counsel and Advocate; Paris X-Nanterre, member and former Chairman of the International Law Commission of the Maître François-Henri Briard, Delaporte Briard United Nations, Counsel and Advocate; Trichet, Counsel and Advocate; Mr Mathias Forteau, Professor of Law at the Maître Emmanuelle Cabrol, Herbert Smith LLP, University of Lille 2, Counsel and Advocate; Counsel and Advocate; Mr Pierre Bodeau-Livinec, Legal Affairs Maître Jean-Pierre Boivin, Cabinet Boivin, Department, Ministry of Foreign Affairs, Counsel; Deputy-Agent; Maître Malik Memlouk, Cabinet Boivin, Mr Jean-Pierre Ghuysen, Inspecteur général des Counsel; transports et des travaux publics, President of the Maître Corentin Chevallier, Cabinet Boivin, French Delegation to the Intergovernmental Counsel; Commission on the Channel Tunnel, Expert- Mr Matthew Page, Herbert Smith LLP, Counsel; Counsel; Ms Joanne Greenaway, Herbert Smith LLP, Mr Arnaud Tournier, Chargé de mission, Counsel; General Secretariat for the Channel Tunnel, Expert-Counsel; Mr Oliver Jones, Herbert Smith LLP, Counsel; Mr Franck Latty, Doctor of Law, Chargé de Mr Milo Molfa, Herbert Smith LLP, Assistant- mission, General Secretariat for the Channel Counsel; Tunnel, Expert-Counsel. Mr Jean-Alexis Souvras, General Counsel, Eurotunnel; United Kingdom Mr David Marteau, Legal Affairs Department, Eurotunnel. Mr Christopher A. Whomersley, Deputy Legal Adviser, Foreign and Commonwealth Office, Agent; Mr K. Akbar Khan, First Secretary, British Embassy, The Hague, Deputy Agent; Mr David Anderson QC, Counsel; Mr Samuel Wordsworth, Counsel; Ms Jessica Wells, Counsel; Mr John Henes, former Chairman, UK Delegation to the Intergovernmental Commission on the Channel Tunnel; Ms Deborah Phelan, Department of Transport; Mr Michael Harakis, Department of Transport. TABLE OF CONTENTS CHAPTER I – PROCEDURAL HISTORY .............................................................................. 1 CHAPTER II – BACKGROUND OF THE DISPUTE ............................................................. 9 A. The Parties............................................................................................................... 9 B. The Fixed Link Project............................................................................................ 9 C. Aspects of the clandestine migrant problem ......................................................... 12 1. Opening of the Sangatte Hostel ................................................................... 14 2. The United Kingdom’s civil penalty regime ............................................... 15 3. Costs of detention and removal of clandestine migrants arriving in the United Kingdom via the Fixed Link ............................................................ 17 D. Assistance to SeaFrance ........................................................................................ 17 CHAPTER III – PRELIMINARY ISSUES............................................................................. 19 A. The constitution of the Tribunal for the purpose of interpreting the Treaty of Canterbury: Article 19(2)(f) .................................................................................. 19 B. Principles of interpretation of the Concession Agreement and the problem of divergent language texts........................................................................................ 24 CHAPTER IV – JURISDICTION AND APPLICABLE LAW .............................................. 27 A. Relevant provisions of the Concession Agreement and the Treaty....................... 27 1. Jurisdiction of the Tribunal.......................................................................... 27 2. Source of the Parties’ rights and obligations ............................................... 27 3. Applicable law............................................................................................. 27 B. The positions of the Parties ................................................................................... 28 1. General arguments on jurisdiction and applicable law................................ 28 2. Jurisdiction over and admissibility of the SeaFrance claim......................... 37 C. The Tribunal’s analysis ......................................................................................... 39 1. Was there a “dispute” between the Claimants and the Respondents as to each of the claims?....................................................................................... 40 2. Do the claims fall within Clause 40.1 of the Concession Agreement?........ 44 3. Implications for the Tribunal’s competence of actual or potential proceedings in other forums......................................................................... 48 D. Conclusions on jurisdiction and applicable law .................................................... 50 CHAPTER V – THE CLAIMANTS’ THESIS OF “JOINT AND SEVERAL RESPONSIBILITY” ................................................................................................................ 51 i A. The positions of the Parties ................................................................................... 51 B. The Tribunal’s analysis ......................................................................................... 54 CHAPTER VI – THE MERITS OF THE SANGATTE CLAIM ............................................ 59 A. Introduction ........................................................................................................... 59 B. The positions of the Parties ................................................................................... 61 1. Consequences of opening and maintaining the Sangatte Hostel ................. 61 2. Adequacy of policing and security arrangements........................................ 66 3. Prosecution policy and its implementation.................................................. 68 4. The bases of the Sangatte Claim.................................................................. 70 (a) Responsibility for Sangatte security................................................... 70 (b) Discrimination against the Fixed Link ............................................... 79 (i) Favourable treatment of the SNCF terminal............................. 79 (ii) Favourable treatment of the Port of Calais ............................... 81 (c) Breaches of French or English law..................................................... 83 (d) The UK’s civil penalties and removal requirements .......................... 85 (i) Civil penalties........................................................................... 85 (ii) Detention and removal costs..................................................... 87 C. The Tribunal’s Assessment ................................................................................... 88 1. The failure to protect the Coquelles site against incursions ........................ 90 (a) The legal standards............................................................................. 90 (i) Assumption of risk for security problems at Coquelles............ 90 (ii) The Concessionaires’ freedom to carry out their commercial policy......................................................................................... 91 (iii) Arrangement of frontier controls .............................................. 93 (iv) Measures necessary for the operation of the Fixed Link .......... 95 (b) The legal standards applied ................................................................ 98 (i) The general situation in the Pas de Calais................................. 98 (ii) The opening of the Sangatte Hostel .......................................... 99 (iii) The situation at Coquelles after September 2000 ................... 100 (iv) The role and responsibility of the United Kingdom ............... 103 (c) Conclusion........................................................................................ 104 2. Favouring the SNCF Terminal and Port of Calais to the detriment of the Fixed Link.................................................................................................. 104 (a) Favouring SNCF?............................................................................. 106 ii (b) Favouring the Port of Calais?........................................................... 107 3. Breaches of French or English
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