Brookfield Seeks $2.7 Billion In Arbitration Against Peru Over Toll Roads

Brookfield Asset Management Inc. has filed for arbitration against Peru, seeking $2.7 billion in damages for alleged illegal expropriation of toll roads. This claim follows years of conflict regarding the Rutas de Lima tolls. Brookfield asserts that previous rulings have not been honored by Lima, which has responded with its own lawsuit citing bribery allegations. The situation poses potential political pressures on Lima’s mayor.

Brookfield Asset Management Inc. has initiated arbitration against Peru, asserting that the Peruvian government has unlawfully expropriated a network of toll roads it manages in the capital city, Lima. This development marks a significant escalation in an ongoing dispute, with Brookfield demanding $2.7 billion in damages due to city-imposed measures that hinder toll collection. Brookfield contends that the arbitration is pursued under the provisions of the free trade agreement between Peru and Canada.

The allegations against the city of Lima stem from an extended history of conflicts regarding the management of the Rutas de Lima toll roads. In its statement, Brookfield expressed that the demand for arbitration follows years of unjust actions by Lima’s city officials and other state entities, including the constitutional tribunal, which have adversely affected the company’s ability to collect toll revenue.

Brookfield has previously sought restitution from Lima, having been awarded $200 million in earlier court proceedings, which the city has yet to honor. Additionally, Lima has launched a counterclaim in a U.S. federal court, alleging that the toll road concession was acquired through corrupt practices prior to Brookfield’s acquisition, a claim that Brookfield refutes vehemently, denying any malpractice during its management of the toll roads.

This arbitration process places added pressure on Lima’s Mayor, Rafael Lopez Aliaga, who has made the termination of Brookfield’s toll collection system a central campaign promise. Lopez Aliaga, a conservative political figure with a previous presidential bid, is perceived as potentially gearing up for another run in the upcoming election next year.

Brookfield Asset Management is pursuing $2.7 billion in arbitration against the Peruvian government, claiming unlawful expropriation of toll roads in Lima. This dispute reflects ongoing tensions between Brookfield and the Lima city government. Amidst previous court rulings favoring Brookfield and contrary legal actions from Lima, this arbitration could have significant implications for both parties, especially in light of the current mayor’s political ambitions.

Original Source: financialpost.com