Guatemala Pays $14.6 Million to Retake Trains

With the payment to be made next month, the 82% stake held by Ferrovías will become property of the Guatemalan state.

Wednesday, September 11, 2013

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".

The transaction is international and the body responsible for making the payment is the Bank of Guatemala. The amount "... includes payment for administrative services and fees to the law firms who participated in the arbitration that lasted five years," noted an article in Prensalibre.com.

Contracts that company holds with third parties (power transmission, pipelines and fiber optics) will now be administered by the state, and with these it expects to recover the payment made.



More on this topic

Guatemala to Review Rail Contracts

September 2013

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. "

A Light at the End of the Tunnel for Guatemalan Railway

July 2012

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.

Guatemala Seeks Lawyers for Ferrovías Lawsuit

July 2011

The Ministry of Economy is searching for legal professionals to continue the arbitration process requested by Ferrovías.

On July 7 the country must present its statement to the International Centre for Settlement of Investment Disputes (ICSID), but in the absence of professionals to take on the case, it has requested an extension.

State of Guatemala unsuccessful in stopping Ferrovias lawsuit

November 2008

Ciadi, based in Washington, rejected the request by the State of Guatemala to suspend the suit for $65 million that was presented by Ferrovias in 2007.

By rejecting the objection, the International Center for the Resolution of Investment Disputes (Ciadi) asserts that it has the jurisdiction to handle the case in which the RailRoad Development Corporation (RDC), the majority shareholder in Ferrovias, is suing the Government of Guatemala.

 close (x)

Receive more news about Mergers & Acquisitions

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


Professional ink refill franchise for sale

Ink and toner refills with latest generation machinery exclusively for the franchisee in Central America, investment opportunity with fast return.
Ink and toner refills with latest generation machinery...

Stock Indexes

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

Commodities

(May 7)
Brent Crude Oil
68.000
Coffee "C"
153.35
Gold
1,832
Silver
27.565