Mexico loses arbitration and must pay 21.1 million euros to Spanish companies

Mexico City, February 15. Mexico must pay 21.1 million euros to the Spanish companies Duro Felguera and Elecnor. The International Court of Arbitration in London issued the ruling after a litigation that the country lost against the European companies.

The conflict began in 2015, when the Federal Electricity Commission (CFE) breached a contract for the construction of a combined cycle plant. As a result, both companies sued the Mexican state for economic damages.

The legal conflict and the ruling against Mexico

In 2015, Duro Felguera and Elecnor signed a contract with CFE to build a thermoelectric plant in the north of the country. However, the project faced payment delays, contract changes, and ultimately, the cancellation of the project.

In this situation, the Spanish companies took the case to international arbitration, denouncing contractual breach and economic impacts.

In 2024, the International Court of Arbitration in London ruled in their favor. As a result, the Mexican government was ordered to pay a multimillion-dollar compensation.

Impact on foreign investment and energy policy

This ruling raises concerns in the business sector. Mexico accumulates several legal conflicts with international companies in the energy sector.

Since the beginning of the administration, the government has sought to strengthen CFE, limiting the participation of private and foreign companies in energy generation and distribution.

Experts warn that these conflicts may deter foreign investment in the electricity sector. Additionally, they could hinder the modernization of the country's energy infrastructure.

Reactions from the government and the affected companies

The government downplayed the impact of the payment, assuring that it will not affect CFE's finances. However, economists warn that this type of compensation could generate distrust among international investors.

Meanwhile, Duro Felguera and Elecnor celebrated the ruling. They also highlighted the importance of international arbitration to protect investments in Mexico.