Stand-off over Dominican toll-road award

21 de agosto de 2012

The Dominican Republic is at odds with a Spanish-led consortium over how to implement an ICC award that terminated their toll-road contract – with the company bringing US enforcement proceedings just after the state allegedly sent troops to take back control of the concession.

Codacsa – a group of Spanish, US and Dominican investors – won around US$41 million in damages and costs from the state in an award rendered in January. A London-seated tribunal held the state in breach of the concession contract and acceded to both sides’ wishes by declaring it terminated.

In February, Codacsa filed a request for correction and interpretation, noting errors in the panel’s damages calculations and asking it to clarify "ambiguities" in the award, including whether restoration of the toll road to state control should be conditional on payment of the damages.

The government took back control of the concession on 11 August, having won an ex parte ruling from a Santo Domingo court recognising the award at the end of last month. Codacsa says armed forces occupied its toll-road stations without warning and in breach of the arbitral panel's ruling.  

Two days after the concession was taken, the company lodged a petition with a district court in Washington, DC, to have the award confirmed, observing that the state had failed to satisfy the award within a 60-day deadline laid down by the tribunal. The award and addendum are now public as they were filed as exhibits in the US proceedings.

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