Brookfield Asset Management Inc. has filed for arbitration against Peru, claiming illegal expropriation of toll roads and seeking $2.7 billion in damages. The company links its actions to previous conflicts with the city and attempts to hinder toll collection. This move adds pressure on Lima’s mayor, who opposes the toll operations.
Brookfield Asset Management Inc. is initiating arbitration against the government of Peru, claiming illegal expropriation of toll roads under its operation in the capital. The ongoing dispute with the city government involves Brookfield’s management of the Rutas de Lima tolls. The firm is seeking $2.7 billion in damages due to actions taken by the city that hinder its ability to collect toll payments, citing the free trade agreement between Canada and Peru as the legal basis for this demand.
This legal action underscores a protracted struggle with the city of Lima, which has previously been obligated to pay $200 million in earlier arbitration disputes, yet has failed to remit these funds. Moreover, the city has launched its own lawsuit in United States federal court, claiming the toll concession involving Brookfield was acquired through bribery prior to the company’s ownership; Brookfield has firmly denied any allegations of corruption during its possession of this asset.
This arbitration intensifies the pressures on Lima’s Mayor Rafael Lopez Aliaga, who has publicly declared his commitment to abolish Brookfield’s toll collections. Recognized as a conservative figure and a former presidential candidate, Mayor Lopez Aliaga appears to be preparing for a potential re-election effort in the upcoming year.
Brookfield’s pursuit of arbitration against Peru for $2.7 billion highlights significant disputes regarding toll road operations in Lima. With past legal orders against the city, ongoing lawsuits, and Mayor Lopez Aliaga’s firm stance against toll collections, this case reflects broader tensions between foreign investment and local governance. The outcome of this arbitration will be pivotal in shaping future business relations and regulatory frameworks in Peru.
Original Source: financialpost.com
