Tribunal Finds Municipality of Lima Breached Concession Contract with Rutas de Lima
Stories are grouped across languages, rewritten into a fixed editorial format, and linked to original sources.
TL;DR
- Tribunal found Lima unlawfully terminated road concession contract with Rutas de Lima.
- Partial award for Rutas de Lima on delayed land delivery; three claims rejected.
- Indemnity to be determined in later arbitration phase, with claim up to US$339.5 million.
- Each party to pay its own legal costs and half of arbitration expenses.
Overview
An arbitral tribunal ruled that the Metropolitan Municipality of Lima (MML) breached its concession contract with Rutas de Lima by attempting an early unilateral termination in 2023.
The tribunal rejected three Rutas de Lima claims, partially accepted one, and declared one founded regarding contract termination.
A separate phase will determine the compensation due, which Rutas de Lima initially valued at up to US$339.5 million, though the amount is still under review.
What Happened
On June 12, 2026, an arbitral tribunal issued a partial award in the dispute between the Metropolitan Municipality of Lima and Rutas de Lima regarding a major road concession granted in 2013.
The tribunal found that the MML's 2023 unilateral termination of the concession, justified by alleged harm to the public interest, violated the contract (Clause 17.7) and had no effect under Peruvian law.
Of five principal claims by Rutas de Lima, three were rejected, one was partially upheld regarding delays in land delivery for the Ramiro Prialé segment, and one- the termination dispute- was upheld.
The tribunal found shared fault for delays on the Prialé section, meaning any awarded compensation would be reduced by apportionment of responsibility.
A new phase of proceedings will determine the final compensation owed. Rutas de Lima has claimed up to US$339.5 million, but the tribunal has yet to confirm or establish the final amount.
Both parties must bear their own legal costs and share arbitration costs equally, leading to a reimbursement obligation by the MML to Rutas de Lima for certain advances.
Context
The concession, granted in 2013, covered construction and maintenance of major highways around Lima.
Successive disputes over tolls, financial adjustments, land delivery, and contractual obligations have resulted in multiple arbitrations between the parties.
Previous partial awards (2020, 2022) have resolved earlier phases; this award responds to more recent claims, including MML's 2023 attempt to rescind the contract.
Why It Matters
- This ruling clarifies the contractual limits for the unilateral termination of public concessions in Peru.
- The size and high profile of the dispute make it significant for infrastructure investment and government contracting frameworks.
- The outcome may affect future dispute strategies for both public authorities and concessionaires in Latin America.