Energy: Guatemala Gains Demand

After IC Power Asia Development sued the Guatemalan State for violating its rights under the Agreement for the Promotion and Reciprocal Protection of Investments, the Permanent Court of Arbitration ruled in favor of the Guatemalan government.

Monday, October 12, 2020

On February 20, 2018, the Israeli entity IC Power Asia Development LTD. (former owner of Energuate) sued the State of Guatemala as a result of an inspection carried out by the Superintendence of Tax Administration (SAT), to verify the liquidation of Income Tax (ISR), informed the Ministry of Economy (Mineco).

You may be interested in "Energy Sector: Outlook for the Region"

According to IC Power Asia Development, their rights under the Agreement for the Promotion and Reciprocal Protection of Investments, signed between Guatemala and Israel and in force since January 15, 2009, were violated by filing criminal complaints for tax fraud and requesting precautionary measures, without exhausting the administrative procedure.

The amount claimed for the alleged violation was $117 million.

The official statement highlights that "... in its defense, the Republic of Guatemala argued that the plaintiff did not have an investment protected under the Agreement, since it had sold its participation to other distributors, and that the conduct of the State in this case does not constitute a violation of the Agreement, because there is no denial of justice towards the investor."

The document concludes that on October 7, 2020, the Permanent Court of Arbitration ruled that Guatemala had not violated the Investment Agreement signed with Israel, and ordered the plaintiff to pay the costs of the arbitration in the amount of approximately $1.8 million.

Do you need to understand the new reality of the energy market? Contact Us









this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423


More on this topic

State of Costa Rica Sued Over Tourism Project

July 2014

A group of U.S. investors is suing the state for $70 million alleging violation of DR-CAFTA preventing the development of real estate project Las Olas in Puntarenas.

The lawsuit filed with the International Centre for Settlement of Investment Disputes (ICSID) by a group of investors led by David Richard Aven notes that "...

Covenant on Tax Information Between Panama and Israel

February 2013

The National Assembly has approved on its third reading an agreement with the State of Israel, to avoid double taxation and prevent fiscal evasion with respect to taxes on income.

A statement from the National Assembly of Panama reads:

Third debate held on agreements to avoid double taxation and tax evasion

TECO Energy Sells Guatemalan Operations

October 2012

Due to the classification of TECO Guatemala as discontinued operations, TECO Energy is revising its earnings-per-share guidance from continuing operations for 2012 to a range between $1.10 and $1.20, excluding charges or gains.

TAMPA, September 28, 2012

TECO Energy (NYSE: TE) today announced that its international power subsidiary, TECO Guatemala, has entered into separate agreements to sell all of the equity interests in the Alborada and San José power stations and related solid fuel handling and port facilities in Guatemala for a total purchase price of $227.5 million in cash. The purchaser of the Alborada Power Station is Sur Electrica Holding Ltd. (SUR). The purchaser of the San José Power Stations and related solid fuel handling and port facilities is Renewable Energy Investments Guatemala Ltd. (REIN), a wholly-owned subsidiary of SUR. SUR and REIN are international companies organized under the laws of the Commonwealth of the Bahamas.

Panama Complies with OECD Requirements

June 2011

After signing today a fiscal information convention with France, Panama has completed the 12 fiscal agreements required by the Organization for Economic Cooperation and Development (OECD) in order to exclude Panama from the list of tax havens.

A press release from the Ministry of Foreign Affairs of Panama states:

 close (x)

Receive more news about Energy

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Costa Rica ECO-Residential Development & Business

Real Estate Development & Adventure Park Jacó, Costa Rica. Multiple Investment Opportunities Available.
The Ocean Ranch eco-residential development is located...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Aug 2)
Brent Crude Oil
73.76
Coffee "C"
182.45
Gold
1,807
Silver
25.54