Corruption and its Effect on Termination Payments: Lessons for LatAm Project Finance Transacctions

The landmark decision in the Ruta del Sol arbitration against the Agencia Nacional de Infraestructura – ANI, the Colombian government agency in charge of awarding concessions through public-private partnerships for the design, construction, maintenance, operation and administration of transport infrastructure in Colombia, addresses the key issue of whether governments must honor termination payments when the award of a concession or governmental agreement was tainted by corruption during the awarding process.