PARIS -(Dow Jones)- French utility Suez Environnement SA (SEV.FR) Monday said that the ICSID, the World Bank's independent arbitration body, has confirmed, on July 30, the Republic of Argentina's liability in the litigation concerning the termination of the water and wastewater concession contracts for the city of Buenos Aires and State of Santa Fe, which had pitted GDF Suez (GSZ.FR), Suez Environnement and unit AGBAR against Argentina. MAIN FACTS:
- GDF Suez, Suez Environnement and AGBAR welcome this decision which has come after many years of litigation during which the parties concerned presented their respective positions at length.
- GDF Suez and Suez Environnement note that no complaint against them has been upheld.
- The ruling will be followed in the coming months by a final determination of the compensation owed to GDF Suez and Suez Environnement for the incurred losses.
- ICSID's decision is an important recognition of the work accomplished on the ground by the employees of Aquas Argentinas, which, in 13 years (1993-2006), enabled, among other things, 2 million Argentineans who previously had no access to running water to be connected to the public drinking water service, and 1 million people previously without facilities to be connected to wastewater services.
- In 1993, Aguas Argentinas was awarded the contract for water and wastewater services for the city of Buenos Aires. The contract was unilaterally terminated in 2006 by the Government of Argentina against the backdrop of the country's financial crisis in 2002 and the depreciation of the Argentinean peso against the dollar.
- By Paris Bureau, Dow Jones Newswires; +331-4017-1740; This e-mail address is being protected from spambots. You need JavaScript enabled to view it
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Source: http://www.foxbusiness.com/markets/2010/08/02/suezargentinas-liability-confirmed-contracts-termination/
