DECIDED BY: PROFESSOR JUAN FERNÁNDEZ-ARMESTO (PRESIDENT), PROFESSOR BERNARD HANOTIAU, (ARBITRATOR) PROFESSOR CHRISTIAN TOMUSCHAT, (ARBITRATOR)
In Saur International v. Republic of Argentina, an ICSID Tribunal found that the Republic of Argentina had violated the principles of just and equal treatment based on its breach of the settlement agreement concluded between the Province of Mendoza and Obras Sanitarias de Mendoza (“OSM”), the Second Memorandum of Understanding (“Second MOU”). The Tribunal also found that acts taken by the Republic of Argentina, namely the administrative intervention of OSM by the Government of the Province of Mendoza (the “administrative intervention”), the termination of the Concession contract, and its transfer to a stateowned water company, constituted expropriation by the Province of Mendoza affecting Saur International’s (“Sauri”) investment in OSM. The breach of the Second MOU, the administrative intervention, and the immediate termination of the Contract of technical assistance, were all acts that the tribunal qualified as violations of the Argentina-France BIT. The tribunal held, however, that Argentina had respected the principles of full and complete protection and security and that the administrative intervention had been conducted in accordance with applicable law, without harassment or threat.
As a result, the Tribunal awarded the Claimants 39,990,111 USD using a discounted cash flow (DCF) model, interest on this sum from 17 September 2007, to the date of the award—22 May 2014 (compounded annually at 6%),