Clifford Chance advises Banesco in ICSID arbitration against Panama
Clifford Chance has advised Banesco Holding Latinoamérica and Banesco (Panama) in an investment arbitration before the International Centre for Settlement of Investment Disputes (ICSID) against the Republic of Panama.
The arbitration, initiated in 2023, concerned claims brought under the bilateral investment treaty between Spain and Panama. Banesco alleged breaches related to the fair and equitable treatment standard and the protection of foreign investments in connection with the execution and potential execution of advance payment and performance bonds linked to public infrastructure contracts.
The claimant sought compensation exceeding USD 13.5 million, while reserving the right to increase the amount to nearly USD 50 million in the event of additional bond executions.
The arbitral tribunal ultimately ruled in favour of Panama, dismissing Banesco’s claims in their entirety and ordering the claimant to cover a significant portion of the state’s legal costs.
The teams
The Madrid office of Clifford Chance advised Banesco on the dispute, with the team led by Fernando Irurzun Montoro.
Panama was represented by Lalive, with a team led by partners Jaime Gallego and Domitille Baizeau, alongside counsel Luis Miguel Velarde Saffer, senior associate Riccardo Loschi and associate Maël Deschamps.
