The Republic of Peru, led by White & Case, commenced the first case registered by the World Bank brought by a Latin American state. Peru lodged a contractual claim against an energy investor before the International Centre for Settlement of Investment Disputes (ICSID).
The case relates to two 2008 concession contracts for the construction of electricity transmission lines in the south of the country. One of the contracts provided for Caravelí Cotaruse to invest US$181 million in the construction of 600 miles of 220-kilovolt lines across the central and southern Andes, in exchange for a 30-year concession on the lines. Both contracts contain a dispute resolution clause stipulating an expedited 90-day arbitration procedure to be conducted in Spanish.
Peru's case comes after Caravelí Cotaruse lost its own claim against the state in April. The company claimed that the global financial crisis of that year had prevented it from constructing the power lines and performing the contract. However, a panel ruled that the claim was barred.
Washington, DC-based White & Case partner Jonathan Hamilton, who leads the firm’s Latin America arbitration practice, stated that the ICSID system is "a two-way street, a reality that may have gotten lost in debates over the efficacy of investment arbitration."