Ecuador considers seeking annulment of arbitration award won by Spanish company

By: MRT Desk

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Ecuador considers seeking annulment of arbitration award won by Spanish company

Ecuador is considering requesting the annulment of a millionaire arbitration award notified this Friday by an international tribunal against the State and in favor of a Spanish contractor, for a failed project to transport propane and butane gas in 2011.

The Attorney General’s Office, in a statement, indicated that it analyzes the content of the award to determine the actions it will carry out, without ruling out the possibility of requesting the annulment of the ruling.

An international tribunal, administered by the International Chamber of Commerce, notified this Friday the ruling in favor of Mantenimientos, Ayuda a la Explotación y Servicios, S.A (Maessa), a Spanish company that formed the GLP consortium, and against the Ecuadorian State, although it reduced the amount of the demand.

Maessa had claimed compensation of 48.3 million dollars plus interest, although the final award condemned Ecuador to pay 17.3 million dollars plus interest and costs, the Attorney General’s Office said in its brief.

The dispute concerns a contract signed in March 2011 between the state-owned shipping company Flopec and the LPG consortium for the supply, construction and assembly of an automation system for the transport of propane and butane from supply vessels to depot spheres in the Monteverde sector. in the province of Santa Elena, located on the southern coast of Ecuador.

However, in December 2014, Flopec unilaterally declared the termination of the contract, executed the guarantees and ordered the inclusion of the LPG Consortium and its members in the list of non-compliant contractors.

Despite the causes, Maessa based its claim on the Bilateral Investment Protection Treaty (BIT) between Ecuador and Spain.

The team of the Attorney General’s Office “is analyzing the award to determine the future actions it will undertake in defense of state interests, among which there is the possibility of filing an appeal for annulment at the headquarters of the arbitration,” he said in the statement.

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