Brookfield Asset Management is suing Peru for $2.7 billion over toll roads, claiming illegal expropriation. The arbitration stems from a long-standing conflict with the city of Lima regarding toll collection issues. Lima counters with allegations of corruption against Brookfield, increasing tensions as the city prepares for potential legal challenges.
Brookfield Asset Management has initiated arbitration against the Peruvian government, seeking $2.7 billion in damages. The firm claims that the city of Lima has unlawfully expropriated several toll roads operated by its subsidiary, Rutas de Lima. This dispute stems from ongoing tensions regarding the collection of toll payments, as local measures have hindered Brookfield’s operations while the arbitration is filed under the Canada-Peru free trade agreement.
The conflict has escalated, with Brookfield asserting that several actions by Lima and state entities have diminished its ability to collect tolls. In a statement, Brookfield pointed out that Lima had previously been ordered to pay $200 million due to similar arbitration cases but has yet to fulfill these obligations.
In response, the city government expressed regret over Brookfield’s decision to pursue arbitration, characterizing it as damaging to residents and noting that toll payment suspension was “inhuman and harmful.”
Lima’s administration has countered by filing its own lawsuit in U.S. federal court, claiming the original concession for the toll roads was procured through bribery linked to Odebrecht, the previous owner. Brookfield vehemently denies these allegations of corruption. This arbitration adds pressure to Lima’s Mayor Rafael Lopez Aliaga, who has campaigned against Brookfield’s toll collection practices and is eyeing a potential run in upcoming elections.
Brookfield’s arbitration against Peru shows a major escalation in a long-standing conflict over toll roads in Lima. The legal dispute underscores issues of expropriation laws and allegations of corruption tied to the previous ownership. As both parties brace for legal battles, the outcome could significantly impact local governance and international business relations involving Peru’s infrastructure management.
Original Source: financialpost.com
