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UNCITRAL Rejects Sacyr’s Solo Panama Canal Arbitration

The company says it will pursue the dispute with its GUPC partners before the ICC in Miami.

Overview

  • The UNCITRAL tribunal declined to open the case filed unilaterally by Sacyr against Panama, a decision issued with a dissenting opinion.
  • Sacyr maintains the ruling will not hit its accounts because provisions are in place and says any future ICC awards could be accretive.
  • The company’s solo claim sought up to €1.7 billion over cost overruns, while GUPC’s combined claims approach $3 billion; Sacyr holds 41.6% of the consortium.
  • Earlier outcomes include a 2020 ICC order to return $240 million, a U.S. Supreme Court refusal to hear an appeal over a $265 million payment, and a 2022 recovery of $250 million in guarantees.
  • Panama prepared its defense by retaining Arnold & Porter Kaye Scholer, allocating up to €5.6 million for representation.