Perenco v. Ecuador

On February 21, 2020, the Committee issued its Decision on the Stay of Enforcement of the Award (the "Decision on the Stay").

Paragraph 82(a) of the Decision on the Stay provides that:

"a. Respondent is ordered to provide the ad hoc Committee, within 60 days following this decision, with a letter signed by Ecuador's Minister of Finance or the official having full authority to bind Ecuador, committing to pay the Award unconditionally, voluntarily and in full, within 60 days after the Committee decides on the Application for Annulment, if the Application for Annulment were not to be upheld in full or in part, and attesting that such payment shall not be subject to any enforcement proceedings or to the intervention of Ecuador's courts."

Paragraph 82(b) of the Decision on the Stay further provides that:

"b. If Ecuador were not to provide the letter under ¶ 82(a) with a text in form and substance satisfactory to the Committee within 60 days following the issuance of this decision, the stay shall be lifted if by such date or at any time thereafter Claimant has provided or provides the ad hoc Committee with a letter signed by an officer having full authority to bind Perenco S.A. committing to unconditionally, voluntarily and in full reimburse Ecuador for any payments received under the Award, within 60 days after the Committee decides on the Application for Annulment, if the Application for Annulment were to be upheld in full or in part and attesting that such payment shall not be subject to any enforcement proceedings or court intervention."

On April 20, 2020, Respondent submitted a letter signed by Mr. Richard Martínez Alvarado, Minister of Economy and Finance of the Republic of Ecuador (the Ministry´s Letter"), stating as follow:

"To whom it may concern,

In my capacity as Minister of Economy and Finance of the Republic of Ecuador, in compliance with the Committee's decision of February 21, 2020 in the arbitration proceeding ICSID No. ARB/08/06 between Perenco Ecuador Limited and the Republic of Ecuador, in case Ecuador's application for annulment were not to be upheld in full or in part, the Republic of Ecuador commits to pay the Award unconditionally, voluntarily and in full, within 60 days counted as from the decision of the Committee on the application. for annulment, without such payment being subject be subject to enforcement proceedings or to the intervention of Ecuador's courts.

Sincerely,
[SIGNATURE]
Econ. Richard Martínez Alvarado
Minister of Economy and Finance
Republic of Ecuador"¹

The Committee considers that the text of the Ministry´s Letter complies in form and substance with the requirement of paragraph 82(a) of the Decision on the Stay.

Considering that the order under paragraph 82(a) of the Decision on the Stay has been complied with by Ecuador, the stay of the award is maintained.

The Tribunal may revisit its decision to maintain the stay at any time during the proceedings if the circumstances so merit and unless otherwise indicated by the Committee, any lifting of the stay will require compliance by Perenco with paragraph 82(b) of the Decision on the Stay.

The Committee, based on the above considerations, decides to continue the stay of enforcement of the Award.