LatinNews Daily - 03 July 2018

Peru: Enagás SA, a Spanish energy company, has announced that it has petitioned the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) to initiate an arbitration process against the Peruvian government to try to recover the US$500m it invested in the Gasoducto Sur Peruano (GSP) gas pipeline project. The announcement comes after six months of reconciliation talks between the two parties failed to yield a mutually acceptable resolution. On 23 January, Gonzalo Tamayo, Peru’s then-mining & energy minister, stated that the government would terminate the GSP concession awarded to a consortium led by Brazilian engineering firm Odebrecht to build the pipeline because the consortium had failed to raise the necessary financing requirements by the 17 January deadline. The consortium, which also includes Peruvian construction firm Graña y Montero, was awarded the concession in June 2014 and had begun construction. However, it faced difficulty raising the necessary funds to continue the project after Odebrecht became embroiled in a series of government corruption scandals in the region.

End of preview - This article contains approximately 167 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial