Procedural Posture

This document is a Complaint filed by IC Power Ltd and Kenon Holdings Ltd (Plaintiffs) in the United States District Court for the District of Columbia. The Plaintiffs seek the recognition and enforcement of an arbitral award rendered against the Republic of Peru on October 3, 2023, in ICSID Case No. ARB/19/19, pursuant to 22 U.S.C. § 1650a and Article 54 of the ICSID Convention.

Background and Underlying Award

The underlying arbitration was conducted pursuant to the Free Trade Agreement between Peru and Singapore. The dispute arose from regulatory measures implemented by Peru's mining and energy regulator, OSINERGMIN, which unilaterally modified the rights of Plaintiffs' Peruvian subsidiary regarding the provision of secondary frequency regulation services. The ICSID tribunal found that Peru abruptly repudiated the legal framework it had devised, rendering its actions "seriously arbitrary" and constituting a breach of the fair and equitable treatment standard under Article 10.5 of the Treaty. Consequently, the tribunal awarded Plaintiffs $110.7 million in damages, alongside pre- and post-award interest and costs.

Relief Sought

In the present action, Plaintiffs invoke the court's subject matter jurisdiction under the Foreign Sovereign Immunities Act (FSIA), noting Peru's waiver of sovereign immunity by signing the ICSID Convention. Plaintiffs request that the court enter an order recognizing the ICSID award as binding and enforce the pecuniary obligations imposed therein as if it were a final judgment of a court of general jurisdiction of one of the several States. The Complaint notes that while a request for supplementation/rectification regarding the interest calculation remains pending before ICSID, such a request does not stay enforcement of the Award.