Swiss cement giant Holcim has already received a USD 260 million in down payment. Under the terms of the agreement, the remaining compensation of USD 390 million will be paid in four equal yearly installments. With the agreement, the international arbitration procedure before the International Center for Settlement of Investment Dispute, (Icsid) comes to an end
The world’s second largest cement producer announced the agreement in Zurich on Monday (File photo)
Economy
Venezuela has reached an agreement with Swiss cement maker Holcim and agreed to pay USD 650 million in compensation for nationalizing its Venezuelan subsidiary unit in 2008. With the agreement the long legal dispute is over.
According to Reuters, Holcim said in a statement released on Monday that it has received an initial USD 260 million down payment. Under the terms of the agreement, the remaining USD 390 million will be paid in four equal installments over the next four years.
The agreement with Venezuela puts an end to an international arbitration procedure before the International Center for Settlement of Investment Dispute (Icsid) that Holcim had filed against the South American country in 2009.
The Swiss cement maker had previously rejected the payment proposals made by Venezuela.
President Hugo Chávez has nationalized much of the Venezuelan industry, from cement makers and steel plants to multibillion oil projects.
Venezuela had already reached an agreement with French cement maker Lafarge to pay more than USD 250 million for the plants it nationalized.
Translated by Gerardo Cárdenas
http://english.eluniversal.com/2010/09/13/en_eco_esp_venezuela-to-pay-cem_13A4461373.shtml
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