Peru’s Ministry of Economy and finance has moved to terminate its contract with French firm PMO Vías, halting their advisory role on key infrastructure projects including the stalled New Central Highway.The decision, finalized February 3rd, follows allegations of corruption linked to Egis, a company associated with PMO Vías, in a separate foreign legal case-conduct Peruvian authorities deemed equivalent to local criminal offenses. The contract termination raises questions about the future of several major transportation projects and sets the stage for potential international arbitration,as PMO Vías contests the move.
Peru’s Ministry of Economy and Finance has terminated its contract with PMO Vías, a French firm advising on major infrastructure projects, including the stalled New Central Highway project. The decision, stemming from concerns over potential corruption, raises the possibility of international arbitration and throws the future of several key transportation initiatives into question.
The move comes after the discovery of information linking Egis, a company associated with PMO Vías, to acts of corruption in a foreign legal case. While the case isn’t directly related to projects in Peru, authorities determined the conduct was equivalent to offenses under Peruvian law.
Economy and Finance Minister Denisse Miralles had previously indicated the government was exploring options for renegotiating government-to-government (G2G) contracts, citing budgetary constraints. She stated on February 5 that a solution for the New Central Highway was needed, but emphasized the scale of the project – estimated at between $24 million and $30 million – was unprecedented for a public works undertaking in Peru. “The day they told you it could be done, they blatantly deceived you,” Miralles said.
Miralles had previously suggested pursuing a public-private partnership (PPP) model for the New Central Highway, requiring the project to generate its own revenue for financing, operation, and maintenance. However, the contract termination with PMO Vías complicates those plans.
The decision impacts not only the New Central Highway but also other critical projects where PMO Vías served as a technical advisor, including the Santa Rosa Expressway and the Santa Rosa Bridge, which provides access to the Jorge Chávez International Airport. According to sources familiar with the project, Peru formally resolved the contract with PMO Vías on February 3.
The move raises concerns about potential arbitration claims, a possibility previously flagged by this news organization. The resolution was documented in a letter from Provías, Peru’s highway agency, and had been under review by the Ministry of Transport and Communications as early as February 2.
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Reasons for the Termination
The termination stems from Egis’s admission of involvement in acts of corruption in a foreign judicial case, as outlined in a February 3 communication from Provías Director Claudia Dávila to Director Jaime Rodríguez. The letter details the “full right to terminate” the contract due to actions attributable to Egis.
Egis provides technical assistance and project management oversight for Provías Nacional, including procurement and consultant management. The letter states that Egis acknowledged “the commission of acts of public corruption by a foreign public official, within the framework of a Public Interest Judicial Convention (CJIP), a legal instrument judicially validated by the President of the Paris Court of Appeal.”
Provías argued that these actions are “materially equivalent to the crimes of corruption typified in Section IV of Chapter II of Title XVIII of the Peruvian Penal Code,” specifically active transnational bribery, constituting a “prohibited act” as defined in the contract.
Carta de Provías, obtenida por Gestión.
Provías informed the Ministry of Transport and Communications of the situation in a report dated February 2. This follows a recommendation from the Ombudsman’s Office in November to re-evaluate the G2G contract with Egis Villes Et Transports Sucursal del Perú, citing the anti-corruption clause.
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Provías and PMO Vías Clash
PMO Vías confirmed the termination in a statement, calling the decision “unilateral and surprising.” The firm argues the move lacks technical and legal basis, relying on allegations “not linked to PMO Vías’ operations in Peru and related to alleged events that occurred years ago in other countries and in completely different projects, for which there are no judicial or arbitration decisions.”
PMO Vías contends it was denied the right to a defense and that the decision violates principles of legal certainty, good faith contracting, and proportionality. The firm stated it “reserves the right to take legal action nationally and internationally to safeguard its rights and interests,” as the projects are nearing the bidding phase.
Provías Nacional clarified that the G2G agreement with France remains in effect and has not been terminated, but that the contract for technical assistance with PMO Vías has been resolved. The agency stated it is in discussions with PMO Vías and will continue those conversations in the coming days.
Comunicado PMO Vías. Fuente: PMO Vías
