Peru has defeated a contractor’s effort to cancel an ICSID award that dismissed a US$150 million claim over delays in upgrading the Pan-American highway, solidifying the outcome of this major construction dispute.
Peru has successfully resisted a contractor’s attempt to annul an award from the International Centre for Settlement of Investment Disputes (ICSID), which dismissed a substantial claim of US$150 million. The claim was related to delays in a project aimed at upgrading a section of the Pan-American highway. The contractor’s request to reinstate this claim has now been firmly denied, thus concluding a critical dispute in the construction sector concerning this infrastructural development.
The ICSID serves as a key institution for international arbitration and conciliation, particularly in disputes involving investments. The claim in question arose from construction delays on the Pan-American highway, which is a vital transportation route for trade and travel across the Americas. Disputes like these underscore the complexities and risks associated with large-scale infrastructure projects, especially regarding adherence to timelines and contract obligations.
The dismissal of the contractor’s attempt to revive the US$150 million claim against Peru emphasizes the challenges faced in international arbitration in infrastructure projects. It reinforces the commitments made by host nations and the limitations imposed on contractors in holding states liable for delays. This decision may impact how future projects are negotiated and the risk assessments conducted by investors in the region.
Original Source: globalarbitrationreview.com
