Brookfield Asset Management Inc. is pursuing $2.7 billion in arbitration against Peru, alleging unlawful expropriation of toll roads in Lima. The ongoing conflict has seen previous financial disputes, and the Peruvian city government faces political pressure from its mayor concerning toll operations, as accusations of bribery emerge.
Brookfield Asset Management Inc. has initiated arbitration against the Peruvian government, claiming illegal expropriation of toll roads in Lima. This dispute has evolved significantly, with Brookfield seeking $2.7 billion in damages due to actions preventing toll collections. The arbitration arises under the free trade agreement between Peru and Canada, marking a noteworthy advancement in the ongoing conflict regarding the operation of the Rutas de Lima tolls.
The relations between Brookfield and the Lima city government have been strained for years. Brookfield has previously reported that the city was required to pay $200 million due to earlier arbitration rulings, although the city has not complied. Concurrently, Lima has filed a lawsuit in U.S. federal court, alleging that the toll concession was secured through bribery, an accusation Brookfield firmly denies.
This arbitration intensifies pressures on Lima’s Mayor, Rafael Lopez Aliaga, who has prominently pledged to eliminate Brookfield’s toll collection system. Aliaga, identified as a conservative figure and a former presidential candidate, is also contemplating another run in the upcoming election, which adds a political dimension to the ongoing dispute.
In summary, Brookfield Asset Management Inc. has escalated its legal battle against Peru by filing for arbitration, disputing the government’s actions that hinder its toll operations in Lima. The claim highlights ongoing tensions between the company and local authorities, revealing deeper issues surrounding the legal management of infrastructure and potential corruption.
Original Source: financialpost.com
