The Center for Settlement of Investment Disputes has started arbitration proceedings in which Panama could end up paying up to $2.5 billion.
Months ago the U.S. company Transglobal Green Energy (TGGE), called on the Panamanian government to reach an agreement on the cancellation of an award for a hydroelectricity plant which was subsequently awarded to Grupo Ideal owned by Carlos Slim, however, lack of action by the authorities led the company to take further action.
After the transfer of the controlling interest to the State, the company will review existing contracts with rail customers.
Prensalibre.com reports: "The lease to Compañía Bananera Guatemalteca, the pipeline easement for fuel transport with Texaco, the route for LPG transport with Zeta Gas, signed in 2002, and the easement for electric power transfer with Generadora Eléctrica del Norte and a similar one with Generadora del Sur, signed in 2001, are the contracts that the state will recover when it gains the rights for the railroad. "
With the payment to be made next month, the 82% stake held by Ferrovías will become property of the Guatemalan state.
This will see the fulfilment of the judgement by the International Centre for Settlement of Investment Disputes (ICSID), which ruled in favor of the company subsidized by Railroad Development Corporation (RDC) in 2012. The Finance chief, Pavel Centeno, said "we have identified the funds and the space in the budget where the money will come from".
Infinito Gold has given an ultimatum to the Costa Rican government, to either agree to resume its gold mining project, or face an international law suit for $1.09 billion.
The Canadian mining company had initially obtained permits for the operation of a gold mine in Costa Rican territory, and had already started the project when a court ruling overturned the award, pointing to flaws in the process of granting permits, and environmental damage.
The Canadian mining company received authorization to operate the El Dorado mine in 2002, during the administration of President Francisco Flores, but his successor Antonio Saca announced - and followed through on - that he would not authorize any mining project, a position also held by the current President Mauricio Funes.
After the court decision that awarded the Guatemalan State the rights to the railroad, President Perez Molina has announced interested in its recovery.
The president of Guatemala announced that investors, who as yet have not been identified, would be willing to bear the cost of debt that the State has with company "Ferrovías", calculated at more than $11 million.
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