A construction contractor has failed to overturn an ICSID ruling that dismissed most of its US$150 million claim against Peru due to delays in improving the Pan-American highway.
A construction contractor’s attempt to annul an ICSID arbitration award has been unsuccessful. The International Centre for Settlement of Investment Disputes (ICSID) dismissed the majority of the contractor’s claim, valued at approximately US$150 million, which arose from delays in a project aimed at improving a segment of the Pan-American Highway in Peru. This ruling represents a significant development in the ongoing legal and financial engagements surrounding infrastructure projects within the nation.
The dispute revolves around a construction contract related to the enhancement of the Pan-American Highway, a crucial transport route in Peru. Delays in the project led the contractor to file a substantial claim against the Peruvian government, asserting grievances related to the delays. The ICSID, which functions to resolve disputes between international investors and states, adjudicated the case, ultimately rejecting the majority of the claim, thus highlighting the complexities and risks inherent in large infrastructure projects.
In conclusion, the ICSID’s dismissal of the contractor’s claim underscores the challenges faced by investors in infrastructure projects, particularly in relation to project timelines and governmental obligations. The decision reinforces the authority of international arbitration bodies in resolving disputes and potentially sets a precedent for similar claims in the future. The outcome emphasizes the need for careful contractual agreements and clear timelines in international construction projects.
Original Source: globalarbitrationreview.com
