Brookfield Asset Management Inc. has filed for $2.7 billion in arbitration against Peru, alleging illegal expropriation of toll roads in Lima. The dispute escalates a long-standing conflict over toll collections, with the city having already faced a $200 million judgment in previous cases. Lima’s government has countered with its own lawsuit, claiming the original toll concession involved corruption.
Brookfield Asset Management Inc. has initiated arbitration against the government of Peru, claiming illegal expropriation of toll roads operated by the firm in Lima. This dispute has been ongoing for some time but escalates with Brookfield demanding $2.7 billion in damages due to measures preventing toll collection. The arbitration process is facilitated under the Peru-Canada Free Trade Agreement.
Brookfield states that arbitrary actions by the Lima city government and other entities have undermined Rutas de Lima’s ability to collect tolls. The city has previously been ordered to pay $200 million in related arbitration and court cases but has reportedly not complied. In response, city authorities expressed disappointment over the arbitration’s initiation, characterizing the halted toll payments as “inhuman and harmful” to residents.
The city of Lima has filed a counter lawsuit in U.S. federal court, claiming that the toll road concession was acquired through bribery prior to Brookfield’s ownership. This infrastructure venture was initially owned by Odebrecht, a Brazilian company involved in extensive corruption in Latin America. Brookfield refutes any allegations of corruption during its tenure managing the toll company.
The unfolding legal battle between Brookfield Asset Management and the city of Lima over toll road operations has intensified, with significant financial stakes involved. Brookfield’s arbitration claim highlights the long-standing discord regarding toll collection and addresses broader governmental actions affecting foreign investments. The situation not only complicates the relationship between Brookfield and Lima but also places political pressure on Mayor Rafael Lopez Aliaga, who vocally opposes the toll road collections.
Original Source: financialpost.com
