Peru Successfully Defends Against Contractor’s ICSID Claim
An ICSID tribunal has denied a construction contractor’s effort to annul its prior ruling that dismissed the majority of a $150 million claim against Peru. The claim arose from delays in a project to enhance the Pan-American highway.
A construction contractor has encountered a setback as the International Centre for Settlement of Investment Disputes (ICSID) has ruled against its attempt to revoke a previous decision that largely dismissed its claim against the government of Peru. The contractor had initially sought $150 million in damages due to delays in a project aimed at enhancing a section of the Pan-American highway, however, the ICSID tribunal upheld the original dismissal of the bulk of the claim.
The case originates from a construction contract related to the improvement of the Pan-American highway, a pivotal roadway spanning several countries in South America. Delays in completing the project led the contractor to file a substantial claim against the Peruvian government, alleging lost profits and additional expenses. The ICSID serves as an arbitration institution for resolving disputes between international investors and host states, which has provided a framework for both parties to present their cases.
In conclusion, the ICSID’s dismissal of the contractor’s annulment attempt reaffirms the tribunal’s previous rulings concerning the validity of the claims against the Peruvian government. This decision underscores the complexities involved in international construction projects and the legal avenues available for addressing disputes between foreign investors and host countries. It also highlights the critical importance of timely project execution in such multinational ventures.
Original Source: globalarbitrationreview.com
