The Municipality of Quito has been ordered to pay more than USD 10 million after losing two international arbitration cases tied to the construction of Metro Line 1.
The ruling, issued under the regulations of the International Chamber of Commerce, determined that the city must recognize contract-based price adjustments linked to changes in legislation. The decision was made by a sole arbitral tribunal.
The payment will go to a consortium made up of Acciona Construcción SA, Acciona Industrial SA, and Acciona Infraestructuras México SA de CV.
The total amount includes:
- USD 2.52 million for temporary equity contributions between 2020 and 2022
- USD 7.17 million related to an increase in the income tax rate from 22% to 25%
- USD 684,000 tied to a covid-related contribution
Authorities are now reviewing the implications of the ruling. The State Attorney General’s Office, working with an external law firm, will analyze the scope of the decisions under the legal framework of the arbitration venue in Santiago, Chile.
The case centers on contractual provisions that allow adjustments when legal or fiscal conditions change during project execution.