Korean Companies Interested in Guatemala Rail

The firms Hyundai Corporation and Sha Yu have shown interest in acquiring a stake in the railroad business.

Tuesday, May 3, 2011

Guillermo Porras of The Attorney General's Office, said that in the course of this month a delegation from the Hyundai company will arrive for a fact finding mission and to learn about the state of the petition for arbitration that the Railroad Development Corporation (RDC), railways beneficiary, has brought against the Government of Guatemala.

"As a state we are looking forward to this operation. We believe it is an issue that can be resolved, and that the Korean companies on acquiring these shares, will be able to negotiate the issue of the petition." stated the governor to the Prensalibre.com

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Guatemala Seeks Lawyers for Ferrovías Lawsuit

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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.

Guatemala: Rail Investment Denial

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There is an old saying that if something looks too good to be true, it probably is ...

The U.S. company Railroad Development Corp. (RDC), which owns the railway concession in Guatemala, has denied having reached an agreement to sell.

As for the Hyundai Corporation, the Asian giant together with another South Korean company had been mentioned as interested in investing $2,400 million in the creation of a dry canal linking the Atlantic and Pacific coasts of Guatemala by railway. Hyundais denies involvement in the project in any capacity.

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Representatives from the Korean companies Hyundai and Yoochang have announced an agreement with the current owner of the Railroad Development Corporation, and a total investment of $2,400 million.

The Korean companies Hyundai and Yoochang Corporation plan to invest in restoring the functioning of the railway linking the Pacific and Atlantic coasts , to create a land alternative to the Panama Canal.

State of Guatemala unsuccessful in stopping Ferrovias lawsuit

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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.

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