The World Bank’s International Centre for Settlement of Investment Disputes (ICSID) has ordered Argentinian authorities to pay US$165m in compensation to former Buenos Aires province water utility Azurix (US) for cancelling the company’s contract in 2002. Argentina faces dozens of claims lodged with ICSID totalling some US$16bn. Most claims stem from the peso’s devaluation and the freezing of utility tariffs in January 2002.

Another recent ICSID decision awarded US$133m to CMS Energy (US), which owned a stake in gas distribution. Hearings at ICSID into another demand, for US$200m by Buenos Aires gas distributor Metrogas (owned by the UK’s BG Group, Spain’s Repsol YPF and a UK investment fund Ashmore), commenced on July 5th. Metrogas is one of the few major energy utilities in Argentina not to have reached a provisional agreement with the government on a new concession contract and tariff structure. However the Argentinian government has said it will not pay any of the damages awarded under the rulings.