Portugal threatened with ISDS case after cancelling bus privatisation plans
October 3, 2016: Portugal is facing a €42 million ISDS claim after it cancelled a deal to privatise part of Lisbon’s public transport system.
According to bilaterals.org, the previous centre-right Portuguese government had planned to privatise the city’s publicly run buses. Mexican transport company ADO had signed two “sub-concession agreements” to take over the ownership of the Metro Lisbon network.
However, current left-wing prime minister António Costa, who took over in November last year, decided to cancel the agreements and the review proceedings, which had yet to approve the proposals.
ADO is arguing that this constitutes "a serious violation of [Portugal’s] international obligations which has damaged our investment”.
It’s yet another case of ISDS being used to intimidate governments for democratic decision-making in the public interest.
Read the full article on bilaterals.org