Enagás' major battle in Peru is one step closer to conclusion after nearly a decade. The International Centre for Settlement of Investment Disputes (ICSID) has once again ruled in favor of the Spanish energy company. Enagás had requested a correction to the ruling from last December, in which the ICSID condemned the South American country to compensate the company with almost 200 million for the unilateral rescission in 2017 of the concession for the Gasoducto Sur Peruano (GSP), a monumental project valued at nearly 7 billion. The company had even claimed 500 million from the Peruvian State. This Monday, the ICSID has once again sided with Enagás and has increased the compensation to Peru to 302 million.
At the company led by Arturo Gonzalo Aizpiri, the decision has been received as "excellent" news. Specifically, the arbitral tribunal under the World Bank has increased the compensation by approximately 104 million dollars, including principal and interests, as reported this morning by the company in a relevant fact to the National Securities Market Commission (CNMV).
"Following this decision by the ICSID, the total amount of the compensation that Peru must pay to Enagás now amounts to approximately 302 million dollars (principal, interests, and costs). The accounting impact of this decision will be included in the first half of 2025 accounts once a detailed analysis has been carried out," the energy group reported. However, the position of the Peruvian government is still pending. Enagás has reiterated to the Peruvian authorities its willingness to "reach an amicable agreement at any time" to allow the execution of the ruling.
The dispute dates back to 2017 when the Peruvian government decided to unilaterally rescind the concession granted three years earlier to a consortium formed by the Brazilian construction company Odebrecht (50%), the Peruvian companies Graña y Montero, and Enagás itself (25% each). This was in the construction of a gas pipeline within the framework of the corruption scandal that revealed bribery for contract awards by the Brazilian company, the famous 'Odebrecht case'. Enagás was a collateral victim in Peru's decision and, unable to reach an economic agreement, brought the case to the ICSID.
Last December, the ICSID declared that Enagás had the right to repatriate dividends from its subsidiaries in Peru, mainly from Transportadora de Gas del Perú (TGP), something that the authorities of the Latin American country had prohibited.