Vizcarra warns of US$ 264m compensation over Cusco’s airport

The arbitration case over Cusco’s Chinchero Airport will go before the
 International Centre for Settlement of Investment Disputes (CIADI in its Spanish acronym) in three month’s time with the Kuntur Wasi consortium deploying its arguments. 
Last Thursday CIADI arbitraton proceedings against the Peruvian state over the concession of Chinchero Airport were initiated by the Sociedad Aeroportuaria Kuntur Wasi, consisting of Andino Investment Holding (AIH) and the Argentine Company Corporación América.Kuntur Wasi had been entrusted with the construction of Chinchero International Airport in Cusco but this project was unilaterally cancelled by the state last July in the name of "national interest."The current President Martín Vizcarra, when Transport and Communications minister, told Congress in May last year that resolving the contract unilaterally could lead to compensation of up to US$ 264.8 million. As AIH president Carlos Vargas Loret de Mola reminded last year, the company has invested around US$ 60 million in engineeríng studies among other expenses. Justice Minister Salvador Heresi claims to have the arguments to defend the Peruvian state, maintaining that the project had been misconceived by the previous Ollanta Humala.government The company tried directly approaching the Transport and Communications Ministry with the proposal  of an agreement based on mutual concessions, as it informed the Superintencia de Mercado de Valores (Peru’s Securities and Exchange Commission) but the state only demanded the handover of the land under concession without  consideraing this proposal,  AIH has sold logistical assets for US$ 250 million.

Source: Gestion Perú