Peru Pays $91 Million to Corporación América Airports in Arbitration Award

Event summary

  • Corporación América Airports' subsidiary Kuntur Wasi received $91.2 million from Peru, resolving a 2024 ICSID arbitration award.
  • The payment stems from Peru's termination of the Chinchero International Airport concession, deemed arbitrary by ICSID.
  • CAAP holds a 50% indirect equity interest in Kuntur Wasi, with the payment reflecting after taxes and expenses.
  • The arbitration case (ICSID Case No. ARB/18/27) concluded that Peru's termination lacked justification.

The big picture

This payment resolves a long-standing dispute over Peru's termination of the Chinchero International Airport concession, highlighting the risks of regulatory uncertainty in infrastructure concessions. Corporación América Airports operates 52 airports across six countries, making this a significant but isolated case in its portfolio. The resolution underscores the importance of international arbitration frameworks in settling investment disputes between private operators and governments.

What we're watching

Regulatory Risk
How this resolution affects CAAP's other airport concessions in Peru and broader Latin America.
Financial Impact
The pace at which the $91.2 million payment will be reflected in CAAP's financial statements.
Governance Dynamics
Whether Peru's government will pursue similar terminations in other private airport concessions.