Brookfield Asset Management Inc. has filed for arbitration against Peru, alleging illegal expropriation of toll roads in Lima, seeking $2.7 billion in damages. The dispute has escalated due to ongoing city interventions that obstruct toll collections. Lima’s government has retaliated with its lawsuit, claiming corruption, while the mayor faces increasing pressure over the matter.
Brookfield Asset Management Inc. has initiated arbitration against Peru, claiming illegal expropriation of toll roads operated in Lima. The dispute stems from ongoing conflicts over the Rutas de Lima toll system and escalates Brookfield’s demands to $2.7 billion due to the city’s interventions that hinder toll collection. This arbitration is pursued under Peru’s free trade agreement with Canada.
Brookfield asserts that the arbitration results from years of actions by the Lima city government and other entities that impaired their ability to collect tolls. Previously, Lima was ordered to pay $200 million in various disputes, yet it has not complied with the payment. In retaliation, Lima has filed its lawsuit in U.S. federal court, alleging that bribery facilitated Brookfield’s concession before its ownership, which Brookfield vehemently denies.
This arbitration increases pressure on Lima’s Mayor Rafael Lopez Aliaga, who has publicly committed to terminating Brookfield’s toll operations and is contemplating another presidential campaign. Such tensions highlight the ongoing legal and financial ramifications stemming from this infrastructure dispute in Peru.
In summary, Brookfield Asset Management’s arbitration against Peru highlights a significant conflict over toll road operations in Lima, alleging illegal expropriation and seeking $2.7 billion in damages. The case emphasizes the involvement of international agreements while revealing ongoing legal disputes between the city and the toll operator. As pressure mounts on Lima’s leadership, the outcomes of this arbitration could have implications for future infrastructure governance in Peru.
Original Source: financialpost.com
