The International Center for the Settlement of Investment Disputes (ICSID) issued an arbitration award by which Bolivia must pay US$105 million for the damages caused to the Spanish bank BBVA, owner of the AFP Previsión BBVA, for the delays caused in the nationalization of the pension system. Today, the Bolivian Government pointed out that the institution did not assess the evidence that Bolivia presented within the arbitration
The institution, which belongs to the World Bank, ruled in favor of the Spanish bank, which began the arbitration in 2018 after, after presenting several proposals, it was not possible to approach the Bolivian Government regarding the valuation of the business after deciding to nationalize it. .
The 11 conclusions of the arbitration award that Bolivia lost in the ICSID are set out below:
1. Reject the jurisdictional objection raised by the Respondent (State of Bolivia) and, consequently, declare that it has jurisdiction over the claim of the Claimant (Spanish bank BBVA), and that such claim is admissible.
two. Declare that the Respondent has violated the BIT (Agreement for the Promotion and Reciprocal Protection of Investments between the Kingdom of Spain and the Republic of Bolivia) by not granting fair and equitable treatment to the investment of the Claimant, in violation of Article 3( 1) of the Treaty.
3. Declare that the Respondent has violated the BIT by taking arbitrary measures that hindered the disposition of the investment in violation of Article 3(2) of the Treaty.
Four. Order the Respondent to pay the Claimant the sum of $94.8 million by way of compensation.
5. Order the Claimant to make available to the Respondent its shares in Previsión BBVA. The Respondent will have one year from the date of this award to accept the transfer of the shares.
6. Order the Respondent to pay the Claimant the sum of $us 10.2 million as compound interest at the annual rate of 6.36% on the amount that appears in the literal generated from October 1, 2020 until on June 1, 2022.
7. Order the Respondent to pay the Claimant capitalizable interest annually on the amounts established in paragraphs (iv) and at an interest rate of 6.36% from the date of issuance of the award until the date on which the compensation is paid .
8. Declare that the indemnity and interest established in literals (iv), (vi), and (vii) be net of all Bolivian taxes.
9. Order that each Party bear its own costs and expenses of representation in the arbitration, including the fees and expenses of its attorneys, experts and witnesses.
10. Order that each Party bear 50% of the costs of the proceeding, including the fees and expenses of the members of the Tribunal, the administrative expenses of the ICSID and direct charges; Y
eleven. Reject the other claims, requests and defenses of the parties.
