Compass Lexecon Experts’ Opinion Help Reduce Damages by 90% in Resubmitted Treaty Dispute

In a resubmitted investment treaty claim by TECO Guatemala Holdings LLC, economic experts Manuel A. Abdala and Julian M. Delamer successfully assisted the Republic of Guatemala to defend against a US$202.3 million claim involving an undue regulatory process leading to low electricity distribution tariffs on TECO’s subsidiary EEGSA. The award, dated April 27, 2020, resulted in a US$26.7 million plus interest ruling to Claimant, or 13% of the total sum demanded. Dr. Abdala and Mr. Delamer provided regulatory and economic evidence to help demonstrate that the effects of the tariff reduction for the 2008-2013 regulatory process could not be extended over subsequent tariff review cycles, a key position of Guatemala’s defense.

Manuel A. Abdala and Julian M. Delamer were supported by a Compass Lexecon team led by Alan Rozenberg in Madrid and included Federico González Loray in London and Andrés Barrera in New York. Compass Lexecon’s experts were retained by Nigel Blackaby, Lluis Paradell Trius, and Francesca Loreto of Freshfields Bruckhaus Deringer LLP and Jean-Paul Dechamps of Dechamps International Law.