MADRID (Reuters) – Spanish telecoms company Telefonica said on Wednesday that the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) had ordered the Colombian government to pay it $380 million as part of an arbitration process.
Colombia was also ordered to pay Telefonica’s legal fees for the dispute that started in February 2018 and compound interest at a rate of 5% as compensation of the damages caused, Telefonica said.
Telefonica said it opposed a series of measures passed by the Colombian government that resulted in Telefonica paying the amount in 2017. The measures violated a bilateral treaty protecting foreign investments signed by the Spain and Colombia, Telefonica said.
The ICSID did not respond to a request for comment, though its website said the case was closed on Oct. 2 in accordance with its arbitration rules.
A spokesperson at the Colombian finance ministry confirmed the arbitration.
In July, Telefonica, which has already divested from many markets in Latin America, said it started talks with New York-listed Millicom to sell its stake in its Colombian unit for $400 million.
(Reporting by Inti Landauro, editing by Aislinn Laing)
Comments