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LatinNews Daily - 10 February 2020

In brief: Peru claims US$1.2bn lawsuit is unfounded

* Peru’s President Martín Vizcarra has insisted that the US$1.2bn lawsuit presente against the country by a subsidiary of the Brazilian construction firm Odebrecht “has no basis or justification”. Odebrecht Latinvest appealed to the World Bank's International Centre for the Settlement of Investment Disputes (ICSID), seeking compensation for the cancellation of its US$7bn contract to build the Gasoducto Sur Peruano (GSP) natural gas pipeline. The contract, awarded in 2014, was cancelled in January 2017 after Odebrecht operations were paralysed by the massive ‘Lava Jato’ corruption scandal. Vizcarra insists that the cancellation of the contract was justified by Odebrecht’s inability to complete the project, and by irregularities in the initial GSP bidding process, acknowledged by Odebrecht in February 2019, when it agreed to pay US$184m in compensation over the course of 15 years.

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