HeadlinesBriefing favicon HeadlinesBriefing.com

Peru Sued Over $99M Arbitration Award in US Court

Bloomberg Markets •
×

A US court has been asked to enforce a $99 million arbitration award against the Peruvian government by a highway concessionaire that says it was blocked from collecting tolls due to protests. The concessionaire is seeking to collect on the award after Peru allegedly failed to pay, escalating the dispute to American courts.

This legal battle stems from infrastructure projects in Peru that were disrupted when protesters prevented toll collection, effectively cutting off the concessionaire's revenue stream. The arbitration award was likely issued after the company proved it suffered financial losses due to the government's inability to ensure access to its toll roads. Such disputes highlight the risks foreign investors face in developing markets where political instability and social unrest can derail infrastructure projects.

The lawsuit in US courts represents a significant escalation in what appears to be a prolonged financial dispute. By pursuing enforcement in America, the concessionaire may be seeking more favorable legal conditions than those available in Peru. The case underscores how international arbitration awards can become complicated when governments refuse to pay, forcing investors to navigate multiple legal systems to recover their money.