📋 Tender Overview
The Ministry of Transport and Communications MTC through its Public Prosecutors Office managed to issue the award in the arbitration jurisdiction that declares unfounded the lawsuit filed by Azteca Comunicaciones against it in which it requested the non-application of the penalty of S 4 million imposed for breach of contract. This award dictates the full effectiveness of the penalty applied by the MTC to the company through Directorial Resolution No. 118-2021-MTC27 for breach of contract with the fourth installment of the concession contract of the National Dorsal Fiber Optic Network within the established period. The request for a reduction of the penalty was also rejected and the Mexican company was ordered to assume all the arbitration expenses. In this way the defense strategy proposed by the MTC during the arbitration process prevented Azteca Comunicaciones from obtaining economic advantages with the arbitration claim alleging an alleged ineffectiveness of the penalty applied and the argument of an excessive penalty. Azteca Comunicaciones was trying to reopen a legal discussion already decided in a previous arbitration between the same parties and that in addition neither the declaration of ineffectiveness nor the reduction of the penalty a position shared by the arbitral tribunal was appropriate. This decision favorable to the MTC will serve to strengthen the institutional position in other arbitrations in which other concessionaires have incurred contractual breaches. In this way the current management of the MTC led by Minister Paola Lazarte ensures that public funds are cautious in a rigorous and effective manner.
