The World Bank's International Centre for Settlement of Investment Disputes (ICSID) has ordered Argentine authorities to pay US$165mn compensation to former Buenos Aires province water concessionaire Azurix for canceling its contract in 2002, local press reported.

The verdict of the international tribunal will be of great interest to both Argentine authorities and litigants pursuing 34 additional compensation claims filed with ICSID, mainly for expropriation of assets, as it sets a precedent for the cases to come.

Although Buenos Aires province will not be happy that it has been told to pay US$165mn to the company, there will be some contentment that the US firm only received 29% of the total US$565mn that it demanded.

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Posted by rjorr at July 18, 2006 10:22 AM