Ruta al Mar/Construcciones El Cóndor Win US$970 Million Arbitration

Medellin-based highway construction giant Construcciones El Cóndor announced May 4 via a filing with Colombia’s Superfinanciera financial oversight agency that it and its “Ruta al Mar” (RAM) investment partners just won a COP$3.58 trillion (US$970 million) arbitration award against Colombia’s national infrastructure agency (ANI).

“Ruta al Mar” – nearly 100% complete now — connects Antioquia through adjoining departments of Córdoba, Sucre, and Bolívar, to Caribbean freight ports.

While the arbitration award is still subject to appeal, “the award conveys several relevant messages from an institutional and sectoral perspective,” according to El Condor.

“First, it validates the Public-Private Partnership (PPP) model, insofar as it confirms the enforceability of contracts and the effectiveness of the arbitration system as a dispute resolution mechanism.

“Second, it reveals a structural misalignment of the contract, resulting both from decisions that affected its economic equilibrium and from the lack of timely measures to correct these deviations.

“Third, it highlights limitations in the compensation mechanisms, which, although contractually stipulated, have not proven sufficient, liquid, or timely to absorb the impacts arising from the materialization of risks, leading to disputes migrating to arbitration,” according to the company.

RAM is a public-private partnership concession contract signed with ANI, “whose purpose is the construction, improvement, operation, and maintenance of approximately 500 kilometers of roads between the departments of Antioquia, Córdoba, Sucre, and Bolívar,” according to El Condor.

“Construcciones El Cóndor S.A. is a 50% shareholder of RAM, acted as the originator of the Concession since 2012, and is the EPC (engineering, procurement, and construction) contractor for the project.

“The arbitration process was initiated in June 2023 due to contractual breaches attributed to the ANI. The main claim was modified in the March 2025 reply memorandum to the early termination of the contract . . .

“In accordance with the rules applicable to international arbitration, the award is subject to the procedure for clarifications, interpretations, and supplementation that the parties may request within the terms established . . .

“Additionally, the decision may be subject to any legal action available under applicable law,” including a possible hearing before Colombia’s national Council of State, El Condor added.