August 11, 2010
PARIS (Dow Jones)—French media conglomerate Vivendi (VIV.FR) Tuesday said the International Centre for Settlement of Investment Disputes, or ICSID, reaffirmed its original ruling and financial award in favour of the company in a long-running dispute with Argentina.
Vivendi said Argentina had three years ago asked the arbitration agency to reverse its original award to Vivendi of $105 million in damages, plus interest and costs, made in 1997. Including interest and costs, the award likely will rise to around $200 million, a source familiar with the situation told Dow Jones Newswires.
“This award determined that the acts of provincial officials of Tucuman violated rights of Vivendi and its subsidiary Compania de Aguas del Aconquija (CAA) and the Treaty between France and Argentina that protects foreign investors,” the company said in a statement.
According to its website, ICSID is an autonomous international institution established under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States with over 140 member states. Its primary purpose is to provide facilities for conciliation and arbitration of international investment disputes.
The dispute between Vivendi and Argentina had been initiated in 1997, Vivendi said, and it concerned a water services concession contract in the Argentine Province of Tucuman