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Peru President: Odebrecht lawsuit before ICSID has no legal basis

15:36 | Arequipa (Arequipa region), Feb. 7.

The President of the Republic Martin Vizcarra on Friday affirmed that there is no legal basis for the arbitration lawsuit filed by the Odebrecht company against the Peruvian State before the International Centre for Settlement of Investment Disputes (ICSID) over the Southern Gas Pipeline Project.

Within this framework, the Head of State said that —to the Government— the interests of the State will prevail, meaning what is best for the country and for the completion of the project.

The top official recalled that the Southern Gas Pipeline construction was suspended in 2017 for breach of contract by the consortium responsible for the works —led by Odebrecht— which is why the Government terminated the contract.

"We found absolutely no legal basis (for the lawsuit) because at that time, in 2017, the causes were attributable to the contractors. It (the consortium) had not fulfilled the commitment of financial closure, it was given a new opportunity and did not comply either," he expressed.

Once this new term had expired, "with all right and justification, the Peruvian State terminated the contract."

"Now, they file a lawsuit that has no justification, but the technicians and experts will present the defense before the ICSID in due time," he stated.

The statesman noted that all international organizations now take the fight against corruption as a top priority and said he trusts that ICSID —which depends on the World Bank— will take this aspect into consideration.

"We do not doubt that —in addition to the technical, economic, and legal arguments— there will be a moral argument because the (Odebrecht) officers themselves have admitted irregularities and corruption in this project," he remarked.

When asked about Odebrecht's statement, which claimed it was willing to withdraw the lawsuit if an agreement is reached, the President was clear in pointing out that the Peruvian Government does not act based on the ups-and-downs of companies.

Within this framework, he pointed out that the Southern Gas Pipeline is a Government priority, and that it will continue under an initial scope aimed at benefiting Puno, Arequipa, Moquegua, and Tacna regions.

Remarks were made after supervising the new CITE services in Peru's southern city of Arequipa.

(END) FHG/MVB

Published: 2/7/2020

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Peru President: Odebrecht lawsuit before ICSID has no legal basis

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