The decision of the House of Lords in the case of Lesotho Highlands Development Authority v. Impregilo SpA 1 has prompted a re-examination of the law in relation to challenges to arbitrators’ awards in the courts. The authors’ initial consideration of the decisions of the courts below2 focused on the extent of arbitrators’ powers, but the pronouncements of the Law Lords raise even more fundamental questions about whether the exercise of those powers is to be reviewed at all.

The article referred to above contains a fuller account of the Lesotho Highlands Water Project from which the dispute arose. It is sufficient here to say that the scheme, chiefly funded by the World Bank, included the construction of the 1,950 million m3 Katse Dam, which was begun in 1991 and reached the point of issue of a taking over certificate in February 1998. The dispute was between the client, the Lesotho Highlands Development Authority (LHDA) and the contractors, a consortium of international firms known as Highland Water Venture (HWV) and was largely concerned with claims by HWV for extra labour costs and other expenses under an amended version of FIDIC 4th edition, which incorporated the ICC Rules of Arbitration. The arbitration hearing was held in London in October 2001 before a panel of experienced London-based lawyers. The tribunal, in its award of January 2002, found in favour of HWV on three of its seven claims, with a total awarded of £1.6m. plus €5.96m. plus interest.