Procedural Context and Purpose

This final Award, rendered by an ICSID tribunal constituted under the France-Venezuela BIT, resolves the remaining issues in the dispute between Saint-Gobain Performance Plastics Europe and the Bolivarian Republic of Venezuela. Following the Tribunal's Decision on Liability and the Principles of Quantum of 30 December 2016, which found Venezuela liable for the unlawful expropriation of the Claimant's investment, this Award determines the final amount of compensation and addresses the allocation of costs.

Determination of Compensation

The Tribunal notes that subsequent to its Decision on Liability, the parties engaged in discussions and, based on calculations performed by their respective experts applying the Tribunal's prescribed DCF methodology, reached an agreement on the quantum of damages. The Tribunal formally records and adopts this agreement, establishing the principal amount of compensation for the expropriation at USD 29.6 million. The Award also quantifies pre-award interest up to 31 March 2017 at USD 4.8 million, for a total of USD 34.4 million as of that date. The Tribunal further orders the payment of pre-award interest from 1 April 2017 until the date of the Award, and post-award interest thereafter, both calculated at a rate of 2% over the average 6-month US Treasury bill rate, compounded annually.

Decision on Costs

The Tribunal addressed the allocation of the costs of the arbitration and the parties' legal expenses separately. It ordered Venezuela to bear the full costs of the arbitration (USD 1,303,189.99), reasoning that Venezuela's failure to pay prompt compensation necessitated the arbitration and that its subsequent refusal to pay its share of the advances on costs constituted a breach of the ICSID procedural framework.

Regarding the parties' legal and expert fees, the Tribunal adopted a more nuanced approach. While acknowledging that the Claimant was forced to arbitrate, it also considered that the Claimant did not succeed on all its claims (specifically, its 'Bauxite Claims' were dismissed) and that its three incidental procedural requests were unsuccessful. The Tribunal rejected Venezuela's argument that it was the prevailing party on quantum, noting the final award was over 300% of what Venezuela had offered. Balancing these factors, the Tribunal ordered Venezuela to reimburse the Claimant for two-thirds of its legal and other costs, amounting to USD 4,634,532.05.

Operative Rulings

The Tribunal's dispositive orders require Venezuela to pay the Claimant: (i) USD 29.6 million as principal compensation; (ii) pre-award interest in two tranches; (iii) post-award interest on the principal amount; (iv) full reimbursement of the costs of the arbitration; and (v) reimbursement of two-thirds of the Claimant's legal and expert costs. All other claims and requests are dismissed.