In Flughafen v. Venezuela, an ICSID tribunal composed of Juan Fernández-Armesto (President), Henri Alvarez, Q.C., and Raúl E. Vinuesa, found in an award dated November 18, 2014 that Venezuela had breached the Chile-Venezuela and Switzerland- Venezuela bilateral investment treaties (BITs) on the grounds of expropriation and denial of justice. As a result, the Tribunal awarded Claimants US $19,428,261 in total damages (plus post- Award interest) and approximately US $2.4 million in arbitration costs and legal expenses.

 

 

Claimants, Flughafen Zürich A.G. (“Flughafen”), a company incorporated under the laws of Switzerland, and Gestión e Ingenería IDC S.A. (“IDC”), a Chilean corporation, formed a consortium to bid for a concession to administer, manage and operate the Isla Margarita Airport in the State of Nueva Esparta (the “State”) and started discussions with the State in October 2001.

 

In August 2002, the State Governor filed an application to obtain approval from the National Assembly to enter into a Strategic Alliance Contract (the “Contract”) with Claimants for the operation, management and administration of the airport.