Procedural Posture and Purpose

This document is a Notice of Intent to Submit a Claim to Arbitration, dated 30 May 2019, filed by Espiritu Santo Holdings, LP (“Investor”), a Canadian enterprise, against the United Mexican States (“Mexico”). The Notice is submitted pursuant to Articles 1116, 1119, and 1120 of the North American Free Trade Agreement (“NAFTA”). It serves as a mandatory procedural prerequisite to the formal commencement of an investor-state arbitration under NAFTA Chapter Eleven, initiating a period for consultation and potential amicable settlement.

Factual Allegations and Basis of Claim

The Investor asserts that its protected investment consists of an indirect interest in a Mexican entity, Servicios Digitales Lusad, S. de R.L. de C.V. (“Lusad”), and a concession agreement awarded to Lusad by the Mexico City Secretariat of Mobility (“Semovi”). The concession granted Lusad the right to substitute existing taximeters across Mexico City’s taxi fleet with a proprietary digital system and to develop an exclusive mobile hailing application. The Investor alleges that following a change in the municipal government, Mexico, acting through Semovi, engaged in a series of acts and omissions designed to frustrate and terminate the concession. These alleged acts include failing to implement a required installation platform, indefinitely suspending the project under political pretexts, and making public statements affirming the new administration's intent to revoke the concession.

Alleged Breaches of Treaty Obligations

The Investor contends that Mexico’s conduct constitutes a breach of several core obligations under NAFTA Chapter Eleven. The primary claims are for violations of: (i) Article 1105 (Minimum Standard of Treatment), by frustrating the Investor’s legitimate expectations and denying due process through arbitrary and non-transparent actions; (ii) Article 1110 (Expropriation and Compensation), arguing that the State’s measures have resulted in a de facto, indirect expropriation of the Investor’s rights under the concession without due process or just compensation; and (iii) Articles 1102 (National Treatment) and 1103 (Most-Favored-Nation Treatment), based on discriminatory treatment compared to domestic and other foreign investors.

Relief Sought

The Investor seeks to submit the dispute to arbitration to obtain full compensation for all losses and damages incurred as a result of Mexico’s alleged breaches of the Treaty. The Notice indicates that the Investor will claim damages in an amount exceeding a specified (redacted) sum, exclusive of interest, costs, and any other relief the arbitral tribunal may deem appropriate. The Investor expressly reserves its right to amend or modify the Notice of Intent.