Costa Rica News – Accountability for promises? Say it isn’t so. The State of Costa Rica faces five lawsuits that are being tried against them by the International Centre for Settlement of Investment Disputes (ICSID).
The total amount in claims is ¢272,000 million. Additionally, they are responsible for paying ¢3,500 for arbitration and legal advice, in dollars that is about $503 million.
The five claims range in purpose and severity. Some are over contracts and standards. There is one from the mining company Infinito Gold. This is over the fact that Costa Rica cancelled their mining contract. Then SyC Vehicular Technical Review’s case is about the lack of electricity rates and management of gas companies that disrespect international standards. Zeta Gas claims that the government violated provisions of their bilateral investment agreement.
Some of the arguments are more personal. Private landowners who were expropriated by the state claim that they were paid too little for their land. Swiss expat shareholders complain of their beach land being taken away.
The process of international arbitration has many stages. If the state settles at any stage or if the claimant withdraws his claim, money will be saved. Another option is to settle less expensively at home before going to international arbitration and paying legal and travel costs.
