The Attorney General (PGE) warned the International Court of Arbitration in Paris to not award exorbitant and excessive demands to the British firm Rurelec for the nationalization of its shares in the Company Guaracachi SA (EGSA) which was seeking compensation of U.S. $ 142.3 million .
The state attorney general, Hugo Raul Montero, said Friday, in contact with La Razon - that statements were made during the arbitration hearing at the international court, but did not specify on what date exactly.
"We have provided the necessary evidence to say and establish that the amounts demanded (by Rurelec PLC) are really exorbitant and excessive," he said Montero has been ininaugurated the National Higher Education Diploma and Masters in Security, Defence and Development Dept.
The May 13, 2010, Rurelec (the company) referred the letter of formal notice of dispute with Bolivia for the nationalization of EGSA on May 1 of that year [2010].On March 2, 2012, the company reported that the "total [full] compensation" sought for the nationalization of its shares in Guaracachi (50.001% equity) amounted to a total of U.S. $ 142.3 million, "plus interest" generated "until full payment" of compensation.
The authority of the PGE [Attorney General] insisted and pointed out that the British compensation requested is excessive and said that it was estimated it to be less by the State, but did not specify how much is that amount. "The evidence we have presented shows that the claim is too excessive and not the real amount, that's what we went to Paris [for]".
Defense. On March 5, 2012, Vice President Alvaro Garcia Linera said that "what you are doing [with] Rurelec is an act of abuse and corporate arrogance" and then said that "the state will defend and prove with evidence that cannot compensate the kind of money a private company has not invested [in a company] ". On 18 February this year, La Razon reported the procedure that was ordered by the Arbitration Tribunal, the hearing for Guaracachi/Rurelec was held from 1 to 10 April this year 2013.
Raul Montero said yesterday that the Bolivian Government is now waiting for the resolution of the arbitration award to be issued by the International Court after evaluating all the evidence that was presented by both parties. "There are (other) instances yet (to) that can be used if the fault is really unfair and we operate in other settings."
Delegates to the case
The company appointed M.Conthe Rurelec (Spain) as its representative on the arbitration and elected Raúl Vinuessa Bolivia (Argentina).
Expert says that the award will be a final judgement
The lawyer and arbitration expert Jorge Valle said yesterday that an arbitration award is a statement issued by an international court in which the conflicting parties must comply. The appeal to any aspect of the judgement in similar in instance and is likely to be rejected.
"The award is a final judgement for the ultimate resolution of parties in arbitration and is final unless there is a noticeable illegality of any law or laws that incurred by the court in making the award," he said.
For Guaracachi, explained that if the Bolivian state appeals the ruling of the International Court of Paris before other courts, should be against the country, is likely to be rejected. The lawyer argued that a country can negotiate a settlement with the plaintiff even before the decision is issued or after it is issued.
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