In Guatemala, businessmen are asking the incoming government to create a public policy on foreign investment that incorporates issues such as fair and equitable treatment of investments, the minimum standard of treatment and the definition of arbitrariness.
Foreign direct investment (FDI) in the country is not having its best moment, as figures from the Bank of Guatemala indicate that in 2018 the flow captured was $1.031 million, 12% less than the $1.170 million reported in 2017. See official data.
An international tribunal has ruled in favor of the Costa Rican government in a legal process in which US investors denounced arbitrary actions in the development of a real estate project in Esterillos beach.
From a statement issued by the Ministry of Foreign Trade:
San Jose.On September 19, 2018, the Government of Costa Rica was notified by the International Center for Settlement of Investment Disputes (ICSID) of the decision adopted by the Arbitral Tribunal in the case of David Richard Aven et al.c.Costa Rica (known as "Las Olas").This arbitration was filed by a group of US investors in 2014, under the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR).
The International Centre for Settlement of Investment Disputes has ruled in favor of El Salvador in the dispute with the mining company OceanaGold, owner of the El Dorado gold mine.
From a press release by OceanaGold Corporation:
(MELBOURNE) OceanaGold Corporation (TSX/ASX/NZX: OGC) (the “Company”) has been advised that the arbitration tribunal constituted by the World Bank’s International Centre for Settlement of Investment Disputes (“ICSID”) has found in favour of the Government of El Salvador (the “Government”) in its dispute with an OceanaGold indirect subsidiary company, Pac Rim Cayman LLC. ICSID granted an award of US$8 million to the Government of El Salvador to cover its legal fees and costs.
The Centre for Settlement of Investment Disputes has ruled against the businessman Julio Lisac, who filed the suit after cessation of a concession for a hydroelectric project.
From a statement issued by the Ministry of Economy and Finance:
Panama wins arbitration in ICSID · The lawsuit filed by Transglobal Green Energy against the Republic was rejected
At the request of the parties, arbitration and dialogue has been suspended for 30 days in order to reach an agreement over the shareholding structure of the company LaGeo.
From a statement issued by the Government of El Salvador:
Talks to find solutions to disputes between the State of El Salvador and the Italian company ENEL Green Power, over the ownership structure of the company LAGEO SA, de CV, started today in Washington, DC, with a meeting taking place on the premises of the International Centre for Settlement of Investment Disputes (ICSID), which is the forum for arbitration and conciliation of the World Bank Group.
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 "... national authorities treated them unfairly, in relation to a real estate development project in the Esterillos beach area in the Central Pacific. They also claim that the Free Trade Agreement (FTA) with their country was violated. "
For the first quarter of 2014 the Center for International Investment Arbitration could issue a ruling on the suit brought against the Guatemalan State.
This was explained by Silvia Alvarado, director of the National Energy Commission (CNEE).
The company "in 2010 went to the International Centre for Arbitration Relating to Investment Disputes (ICSID) claiming that the State gave an unfair and inequitable treatment by setting the Value Added Distribution (VAD) in 2009 at an amount less than requested by the Empresa Eléctrica de Guatemala S.A. (EEGSA), of which Teco at that time was a shareholder along with the Spanish Iberdrola " reported Elperiodico.com.gt.
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".
The Italian consortium Enel has filed a case against the Salvadoran State with the ICSID over a dispute on equity interest in the geothermal plant.
The case was filed with the International Centre for Settlement of Investment Disputes (ICSID).
The lawsuit, according to the company, is due to the government trying to be more involved in LaGeo, and also because they believe they have been denied their legitimate rights.
The U.S. Commerce Group had sued the Salvadoran government for $100 million, over the revocation of environmental permits for a mining project.
Attorney general Luis Antonio Martinez announced that the International Centre for Settlement of Investment Disputes (ICSID) of the World Bank rejected the annulment petition presented by the mining company against a decision favorable to El Salvador which the court issued in 2011.
After the final decision by the Constitutional Court dismissing their claims, Industrias Infinito has announced it will continue litigation in international tribunals.
"Industrias Infinito turned to international arbitration with the International Centre for Settlement of Investment Disputes and Investment Disputes (ICSID) in April, the company is asking the State to pay $1.092 billion in compensation for halting the mining concession", reported Nacion.com.
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.
Arbitration between the Salvadoran government and the mining company Pacific Rim is in its final stages at the International Centre for Settlement of Investment Disputes.
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.
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