A construction contractor has been unsuccessful in its attempt to annul an ICSID award that rejected most of its US$150 million claim against Peru regarding a delayed Pan-American highway improvement project.
A construction contractor has faced a setback as it attempts to overturn an ICSID decision that largely dismissed its claim against the Republic of Peru. The claim, amounting to US$150 million, stemmed from delays in a project aimed at upgrading a segment of the Pan-American highway. This ruling solidifies Peru’s position regarding its contractual obligations and the management of infrastructure development projects, which are crucial to the nation’s transport infrastructure.
The International Centre for Settlement of Investment Disputes (ICSID) facilitates the conciliation and arbitration of international investment disputes. The recent case involves a contractor that pursued compensation for alleged delays in a significant highway improvement project. Such investment disputes often arise in the context of public works, particularly those funded or managed by government entities, affecting both the contractor’s financial interests and the state’s capacity to execute infrastructure projects.
The ICSID’s dismissal of the contractor’s primary claims reinforces Peru’s legal stance in public infrastructure contracts. This ruling not only prevents the financial repercussions of the claim but also emphasizes the importance of adhering to timelines and contractual obligations in large-scale construction projects. The outcome is significant for both the construction sector and Peru’s ongoing efforts to improve its infrastructure.
Original Source: globalarbitrationreview.com
