Andina

Peruvian State to defend itself against Odebrecht's lawsuit before ICSID

14:58 | Lima, Feb. 5.

The Peruvian State is respectful of its contractual and international commitments, and will exercise its right of defense against the arbitration lawsuit filed by Odebrecht before the International Centre for Settlement of Investment Disputes (ICSID), the Economy and Finance Ministry reported on Wednesday.

In a statement, it stressed that Peru has a solid track record in international lawsuits cases and has obtained favorable rulings against claims for more than US$50 billion, in more than a dozen lawsuits filed by investors linked to contracts and investment treaties.

As a result of such proceedings, it has recovered approximately US$110 million, showing a transparent and diligent behavior that respects the Rule of Law, which has ensured the guiding principles on private investment promotion.

"In accordance with the positive record that the State has in international investment disputes, Peru will defend itself against this lawsuit," it said.

Likewise, the Ministry reaffirmed its commitment in the fight against corruption and reserves all its rights under current legislation, including those related to anti-corruption matters and public international law.

"The Peruvian State is respectful of its commitments, both contractual and international ones. However, the State will exercise its right of defense and will firmly oppose any inappropriate use of dispute resolution mechanisms," it added.

Odebrecht demands more than US$1.2 billion in compensation, arguing that Peru violated its obligations under the Agreement between Peru and the Belgian-Luxembourg Economic Union on the Reciprocal Promotion and Protection of Investments, in relation to the Southern Gas Pipeline Project.

The State terminated the contract because the consortium failed to obtain the financing and accredit the financial closure within the term established in the concession contract, even after two extensions granted by the State.

(END) NDP/VVS/MVB

Published: 2/5/2020