Definitive settlement of the dispute between SUEZ and Argentina on Aguas Argentinas
SUEZ,Aguas Argentinas,wastewater treatment
The Argentine government and SUEZ have concluded and implemented a transactional settlement agreement in compliance with the ruling handed down by the World Bank’s International Center for Settlement of Investment Disputes (ICSID) in favour of SUEZ in respect of the Buenos Aires water and wastewater management concession, terminated in 2006.
Several SUEZ group entities, both internal and external, having been parties to the proceedings will benefit from the agreement, which applies a percentage reduction identical to that granted by Argentina for the settlement of previous ICSID sentences. For the SUEZ Group alone, the cash amount received is €220 million (SGD 333 million).
The recognition of this transaction in the Group’s financial statements will be finalized and publicly disclosed on the closing of the Group’s accounts on June 30, 2019.
In addition, ICSID handed down a definitive ruling on December 14, 2018 in favour of SUEZ relating to the termination of the water and wastewater management contract, Aguas Provinciales de Santa Fé, Argentina.
The ruling marks a major milestone in the dispute settlement proceedings. A new phase has now begun with a view to obtaining the implementation of ICSID’s decision for this second sentence.