Sidley achieved a significant victory on behalf of the Republic of Colombia against claims brought by Naturgy Energy Group, S.A. and Naturgy Electricidad Colombia S.L. (formerly Gas Natural SDG, S.A. and Gas Natural Fenosa Electricidad Colombia S.L.) (Naturgy) of Spain under the Spain-Colombia BIT (Naturgy Energy Group, S.A. and Naturgy Electricidad Colombia, S.L. (formerly Gas Natural SDG, S.A. and Gas Natural Fenosa Electricidad Colombia, S.L.) v. Republic of Colombia (ICSID Case No. UNCT/18/1)). On March 12, 2021, all claims against the Republic of Colombia concerning alleged violations of the Treaty were dismissed.
The claims related to the Colombian government’s intervention and planned liquidation of Electricaribe, the electricity distribution company for Colombia’s Caribbean coastal region, to avert the financially failing company’s collapse and risks to the electricity supply in the region.
Naturgy claimed damages of US$1.3 billion under the Spain-Colombia Bilateral Investment Treaty in connection with its investment in Electricaribe in this high-profile dispute, which has been widely reported, including in the Financial Times.
The Sidley team was led by partner Jennifer Haworth McCandless and former Sidley partner, Stanimir A. Alexandrov (now of Stanimir A. Alexandrov PLLC) and included partner Marinn Carlson and associate María Carolina Durán.