Riyadh — Mubasher: Middle East Paper Company (MEPCO) filed a lawsuit at the Administrative Court in Jeddah against the Ministry of Environment, Water and Agriculture and the National Water Company (NWC).
The company is seeking compensation totaling SAR 77.26 million for the fair rental value of land that was previously expropriated.
The legal action follows a 19 May decision by a valuation committee which set the compensation at SAR 8.01 million.
MEPCO rejected this valuation, stating it does not reflect the fair market value for the utilization period spanning from 3 September 2007 to 14 December 2016.
The company’s new claim of SAR 77.26 million is based on updated assessments from three independent accredited real estate evaluators.
This dispute follows a previous successful appeal where the Administrative Court of Appeal overturned an earlier valuation of SAR 2.60 million.
The company moved to file the current lawsuit after more than 60 days passed without a resolution to its formal grievance submitted to NWC.
MEPCO stated that the financial impact cannot be determined at this stage and will depend on the final judicial ruling.
