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Lexology | 29 December 2022
Guatemala will conclude arbitration of more than 12 years with Teco Holdings LLC
by Jorge Luis Arenales , Mario René Archila and Fabian Osorio | Arias
On November 18, 2022, the Governmental Agreement 282-2022 of the Ministry of Economy was published in the Central American Newspaper, el Diario de Centroamérica, which establishes the settlement agreement whereby Guatemala shall pay approximately US$46 million to Teco Holdings LLC, in order to conclude the investment arbitration that such company filed against Guatemala in November 2010, before the International Centre for Settlement of Investment Disputes -ICSID- due to the amendments to the electricity regulations, specifically, the change in the electric energy tariffs of the National Electric Energy Commission (Comisión Nacional de Energía Eléctrica) applicable to the period of 2008 to 2013. Currently, the third reversal process of the original ICSID award was ongoing. Nonetheless, through this agreement were established the parameters for the settlement agreement between Guatemala and Techo Holdings LLC for the purpose of ending the arbitration process.