International Arbitration Between the Operator of a Toll Road Concession in Colombia and Its Grantor
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April 25, 2023
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Situation
POB, the operator of a toll road concession in Colombia, claimed that, as a result of breaches by the grantor of the concession, ANI (National Infrastructure Agency), it was precluded to carry out the construction and subsequent operation of certain tranches of the concession. This resulted in losses to POB as a result of the profits it was unable to generate from the operation of the affected tranches. POB claimed its damages in an arbitration procedure before the International Centre for Dispute Resolution of the American Arbitration Association.
Our Role
FTI Consulting was appointed as independent expert witness by POB to assess the losses faced by the operator and those of its subcontractor in charge of the construction.
We assessed the losses faced by POB its shareholder as a result of the claimed breaches. This involved a detailed analysis of POB’s rights and obligations under the concession contract in order to understand and assess the economic consequences of the alleged breaches.
Our work focused on the following aspects:
- Detailed analysis of rights and obligations under the contract;
- Assessment of the economic consequences suffered as a result of the claimed violations;
- Drafting of three expert reports in Spanish detailing our analyses and conclusions for the tribunal.
We also assessed the damages suffered by the subcontractor in charge of the construction, by analysing its loss of profits on the tranches which were not built.
Our analyses were developed in three expert reports submitted to the tribunal. We gave oral evidence during hearing in December 2022 and June 2024. In December 2024, the Tribunal ordered ANI to pay compensation of more than USD 300 million to POB.
Our Impact
Our analysis strengthened the demonstration of causality by analysing the economic and financial consequences that the breaches had directly on POB.
We quantified the damages suffered by POB and its subcontractor in charge of the construction as a result of the violations.
The Tribunal ordered the respondent to pay compensation of more than USD 300 million to our client and also awarded interest based on one of the alternatives proposed by FTI Consulting.
Published
April 25, 2023
Key Contacts
Senior Managing Director, Head of France Economic and Financial Consulting