1. I hereby submit the present Supplementary Expert Report (“Second Report”) to supplement my previous Report dated October 1, 2010 (“First Report”), in the context of the Arbitration before the International Centre for Settlement of Investment Disputes (ICSID) initiated by Railroad Development Corporation (RDC) against the Republic of Guatemala1.

2. I confirm the contents of my First Report, and include it in the present Report by reference. My two Reports should be read jointly.

3. In its Reply, the Claimant, based on Mr. Eduardo Mayora’s opinion, tried to attack several of my conclusions and interpretations of Guatemalan law. Claimant’s and Mayora’s conclusions are, in my opinion, erroneous and unfounded, and do not affect in any manner whatsoever the conclusions reached in my First Report, as shall be explained in the Sections below.

4. This Expert Report confirms that Guatemala did not violate any property rights in Contract 143/1582. Ferrovías never acquired any property rights under Contract 143/158 by virtue of the fact that, in accordance with Guatemala’s legal system, neither Ferrovías nor RDC had any reasonable expectations that Contract 143/158 was valid, or that the government should act as though it was valid.

5. This Expert Report confirms that, according to the Constitutional Guarantee of the Right of Defense3, Ferrovías’ right to an equitable trial was not violated nor restricted as Ferrovías was summoned and heard during the legal proceeding initiated by Guatemala before the courts of law, where Ferrovías was given the opportunity to prove the arguments asserted in defense of the rights invoked during the current legal process, and which is currently is deciding whether or not the Lesividad of Contract 143/158 will stand.