Regulates dispute settlement procedures for major infrastructure contracts between public administration and private contractors
23 Sep 2019
On 20 September 2019, the government enacted Decree Nº 10.025, which enables the use of arbitration as a dispute settlement mechanism for commercial disputes related to major infrastructure projects. The text came into effect on 23 September 2019.
The text provides for arbitration on disputes related to ports, airports, railway and waterway infrastructure sectors, to be settled between the public administration and any private contractor (e.g. dealers, sub-dealers, lessees, permit holders or port operators).
The following matters may be submitted to arbitration: all issues related to the economic-financial balance of an agreement, the quantum of compensation for termination or transfer of a contract, or alleged breaches of contractual undertakings by either party.
Decree Nº10.025 also sets out general rules of procedure for arbitration. Brazilian law is the only applicable law, arbitration must take place in Brazil and procedures must be conducted in Portuguese. Arbitration must be carried out before a specialized institution, previously approved by the Office of the Federal Attorney-General. Ad hoc arbitration may be authorized if properly justified.
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Type:
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Treatment and operation (Dispute settlement)
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Industry:
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Services (Construction, Transportation and storage)
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Sources:
