State of Guatemala Wins Arbitration Against Iberdrola

The International Centre for Settlement of Investment Disputes (ICSID) of the World Bank, has ruled against the claim of the Spanish company Iberdrola against the State of Guatemala.

Tuesday, August 21, 2012

The lawsuit filed by Iberdrola, a major shareholder and operator of the Empresa Electrica de Guatemala (EEGSA), in late 2009, was due to a disagreement on the rate of Value Added Distribution (VAD), in force since August 2008.

The ICSID also condemned the Spanish company to pay $5.3 million for the costs of the legal process.

"The decision of the tribunal, based in Washington and released on Monday August 20 2012, was to 'deny the claim of the Claimant (Iberdrola) that the Republic of Guatemala in this case committed acts of denial of justice' .

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