A municipal government in Latin America entered into arbitration with an international investor for a road concession (under a Build-Operate-Transfer arrangement). The issues of the arbitration revolved around the interpretation of the concession contract's tariff (toll) adjustment clause, with the investor alleging that it suffered lost revenues because of the municipality's application of toll adjustments.
DHInfrastructure reviewed the concession contract and other legal documents associated with the concession, as well as correspondence between the parties. We evaluated the model supplied by the concessionaire to support its alleged revenue losses, and developed our own model based on ridership, macroeconomic parameters, and the legal interpretation of the contract. Our model was used to highlight the flaws in the nature and quantity of the concessionaire's alleged damages. Our report, in English and Spanish, was submitted to the arbitration tribunal as part of the legal proceeding. The tribunal determined that the revenue shortfall claimed was baseless and that the claimant had over-collected revenues.