This matter involves an ICSID dispute between Rand Investments and others (claimants) and the Republic of Serbia in relation to the alleged expropriation of Serbian agricultural company BD Agro (ICSID Case No. ARB/18/8). BD Agro was a dairy farm focused on milk production but which also held 300 hectares of land near Belgrade. Claimants acquired their interest in BD Agro in 2005 as part of privatization. Following disputes over the privatization agreement, Serbia took ownership of the company in 2015, allegedly expropriating the claimants’ investment.

The claimants retained NERA to provide expert testimony on damages suffered as a result of the alleged expropriation. The NERA team consisted of Senior Managing Director Richard Hern, Director Zuzana Janeckova and Consultant Ricardo Rodrigues. NERA was asked to assess the value of the claimants’ interest in BD Agro as of the expropriation date.

NERA presented a valuation of BD Agro under different methodologies, including comparator-based market approach and discounted cash-flow approach. NERA also presented arguments why BD Agro should be valued as a going concern given the company’s prospects as of the valuation date, in response to criticism from the opposing expert.

Dr. Hern presented NERA’s analysis of damages in three expert reports and provided oral testimony at a hearing in The Hague in July 2021. In June 2023, the tribunal ruled in favor of claimants and awarded damages of 15 million euro before pre-award interest.