Notas de prensa y comunicados

International tribunal rules in favor of Peru in la Oroya arbitration

The Ministry of Economy and Finance advises that an international arbitral tribunal issued a decision in favor of Peru in the international arbitration related to La Oroya, called The Renco Group, Inc v. The Republic of Peru (Case No. UNCT/13/1).

This result marks a success for Peru in the first dispute brought under the Peru-United States Trade Promotion Agreement (“TPA”), reflecting Peru’s respect for the agreement. The Renco Group Inc. (“Renco”) is a United States company that commenced arbitration under the TPA against the Republic of Peru in 2011. The arbitration proceedings were administered by the International Centre for Settlement of Investment Disputes (ICSID), of the World Bank.

The dispute relates, in summary, to the operations and environmental remediation measures at the metallurgical facility in La Oroya Peru, which Renco acquired through its Peruvian affiliate Doe Run Peru S.R.LTDA, in a 1997 privatization sale. This arbitration has proceeded in parallel with the separate creditor process of Doe Run Peru, as well as various claims relating to environmental conditions in La Oroya.

On 15 July 2016, the international arbitral tribunal constituted to hear the case issued a Partial Award in Peru’s favor. Specifically, the Tribunal ruled that Renco failed to comply with the Treaty and that “Renco’s claims must (…). be dismissed for lack of jurisdiction.” The tribunal only reserved the issue of the distribution of costs of the arbitration proceedings.

This decision adds to Peru’s positive record in international investment disputes, which it diligently handles in accordance with due process. With this decision, Peru has been successful in 10 cases, trough awards and favorable solutions, and partially successful in the remaining 2 cases. Peru has successfully defeated claims of over US$ 50 billion and, additionally, has obtained decisions in its favor for approximately US$ 110 million .Peru has demonstrated conduct that is diligent, transparent and within the rule of law, consistent with the guiding principles for the promotion of investment and the development of the economy of the country.

Further information will be forthcoming.

Lima, July 18, 2016