Our practice played the role of counselling and being representative in the international arbitration process initiated by our client under the terms of the Foreign Trade Agreement (FTA) related to the protection of the investment performed through our client’s subsidiary for the development of a 20 MW hydroelectric generation power plant granted in a promotional investment scheme, against the actions performed by the Regional Government of Arequipa amongst other offices of the public administration, national and regional.
What is important of this case is that it confronts the actions of the Republic of Perú towards an incentive package of legislation, which was intended to promote investments but instead has created expectative to the investors but no real promotion. On the other hand, this is the first case being arbitrated related to the FTA between USA and the Republic of Perú.
Thus, despite the arbitration process, the authorities continued to request the fulfilment of obligations, such as the submission of quarterly reports on the project, and the remission of information concerning its status.
Throughout the year 2023, we have complied with the authorities’ requests concerning the provision of information on the project, and we continue to advise the client on the initiated process, as we await the result of the process.
