The Kuntur Wasi company will initiate an international arbitration against Peru after the government’s decision to end their contract on the construction of the Chinchero airport.
According to information from El Comercio, on July 2017, three years after signing the contract with Kuntur Wasi to construct this new airport, the Peruvian government decided to solve it unilaterally after not being able to reach an understanding on good terms with each other.
The construction company alleges today that the government’s decision comes from a cause of National Interest that wasn’t funded in the agreed contract and that’s why there were no judicial consequences.
“This circumstance was generated because the government faced (and faces still) a political internal situation. Nevertheless, in a state of law, it is not a valid cause to end a contract”, explained Kuntur Wasi to El Comercio in a statement.
Because the company considers that the government hasn’t kept their part of the agreement for the construction of the Chinchero airport they feel forced to solve the issue in an international arbitration. They also said that they will hand over the lands, as well as the detailed engineering studies, even if, to this date, they haven’t received payments from the State.
President Pedro Pablo Kuczynski responded to Kuntur Wasi’s announcement that they have a right to take these actions because “that’s why arbitration exists”, according to El Comercio.
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