Translation provided by JIGGSLAW®. The Peruvian Minister of Transport and Communications (MTC in Spanish) announced that it had won an arbitration against Azteca Comunicacion, which had sought a $4 million fine for breach of contract.
The arbitration will address a MTC fine imposed upon the company “due to a contractual breach related to the fourth delivery of the Fibre-Optic National Dorsal Network procurement contract within the agreed timeframe.” Moreover, the tribunal refused to reduce the fine and ordered the Mexican company to pay the arbitration costs.
Background
Azteca Comunicaciones threatened Perú with investment arbitration proceedings before the International Center for Settlement of Investment Disputes (ICSID) In May 2021 if the fiber-optic procurement contract was terminated, claiming indirect expropriation by Peru.
The project “Fibre-Optic National Dorsal Network: Universal North Signal, Universal South Signal, and Universal Center Signal” was granted a 20-year license in 2014 to design, finance, implement, operate, maintain procurement goods and the delivery of the provider’s services and additional facilities and services.
This latter final stage, the delivery of provider services, is currently being carried out.
The project will provide public entities with faster internet access in order to relieve congestion on private internet networks.
Other arbitrations
MTC informed about the award delivered in its favour in the arbitration against Azteca Comunicaciones Peru S.A.C in March 2021, which was related to the fibre-optic procurement contract.
The Peruvian Ministry filed this arbitration, claiming that Azteca was obliged to acquire land for the establishment of the Fiber-Optic Dorsal National Network nodes.
