BUENOS AIRES, April 10 (Reuters) - Argentina will appeal an order by international arbitrators that it pay Suez Environnement $405 million in damages relating to the termination of a water management contract, its economy minister said on Friday.
The minister, Axel Kicillof, said Argentina had terminated the contract due to inadequate investments by Suez’s subsidiary Aguas Argentinas and the firm’s failure to honor its contractual obligations.
The International Centre for Settlement of Investment Disputes’ (ICSID) decision to award damages followed a procedure lasting several years, France-based Suez said on Thursday.
“We are going to appeal the ruling,” Kicillof told reporters. “The ICSID did not recognize moral damages or compensation (for Argentina).”
Aguas Argentinas was awarded the contract to manage water and waste water services in the capital Buenos Aires in 1993, but the government ended the contract in 2006.
Reporting by Jorge Otaola; Writing by Richard Lough; editing by Gunna Dickson