Background: Fibre network project is abandoned after parties fall out

You are not logged in. If you are a subscriber, please Login to access. If you are not a subscriber, you can contact us for a rate quote at subscribe@iareporter.com. Alternatively, you can sign up to receive free email headlines here.

Spain’s second request for reconsideration added to costs and duration of the proceedings, with consequences for decision on costs

Short-term, risk-free rate with an added margin should compensate loss of opportunity to use money

Even small discrepancy between returns and reasonable rate should be compensated

Focus on actual economic impact of Spain’s breaches means that actual maintenance costs should be used – even if those were above average

Tax shield should be taken into account when discounting cash flows

While distinct, the compensations owed for Spain’s treaty breaches overlap, and reducing one may increase the other

Background: Findings on liability prompt dedicated

Tribunal does not address recent dissenting opinion in Portigon AG. v. Spain

CJEU jurisprudence does not constitute an impediment to the tribunal’s jurisdiction

Tribunal highlights differences with Novenergia and PL Holdings judgments, based on the absence of a lex arbitri in ICSID proceedings

Case law filed by Spain is examined even in the absence of a request for leave to submit additional evidence

Tribunal reaffirms that request for reconsideration of previous ruling is admissible only in exceptional circumstances

Background: Spain files second request for reconsideration, this time relying on recent set-aside decisions

Dissent finds source of investor’s capital relevant to nationality

Majority relies on place of incorporation to ground corporate nationality

Tribunal decides on parameters to calculate the internal rate of return and asks parties to provide joint calculation

Tribunal sets reasonable rate of return at 7%

Tribunal concludes that the disputed measures are not covered by the ECT’s umbrella clause and do not create obligations as unilateral acts under international law

Tribunal majority judges Spanish measures to be unreasonable and disproportionate if they do not ensure a reasonable rate of return

Tribunal reckons that its decision “is not necessarily inconsistent” with European Commission’s 2017 Decision on State Aid

Tribunal unanimously considers retroactive element of the New Regime to be a violation of the ECT

Majority regards claimants’ due diligence as not particularly thorough concerning legal risks

Claimants’ registration of the plants and other non-legal documents did not create expectations to a stable FiT either, majority finds

Majority reckons that Spanish regulatory regime only gave rise to an expectation of a reasonable rate of return

Archives