The dispute centers on the Villeta Project, which was designed to be the largest single foreign industrial investment in Paraguayan history. ATOME alleges that the state breached the UK-Paraguay Bilateral Investment Treaty by rescinding decrees that previously guaranteed the terms and pricing of the project’s Power Purchase Agreement. Through legal counsel at White & Case LLP, the company is now seeking to protect its shareholders' interests after the state’s policy shift threatened the viability of the facility.
ATOME PLC Initiates Arbitration Against Paraguay Over Villeta Project
London-based green fertiliser developer ATOME PLC has served the Republic of Paraguay with a formal Notice of Dispute, citing the government’s revocation of presidential decrees essential to its US$665 million Villeta Project. The move triggers a three-month window for amicable resolution before the company pursues international arbitration.
Should the parties fail to reach a settlement within the mandated three-month period, the case will escalate to the International Centre for Settlement of Investment Disputes in Washington D.C. The UK government, along with embassies from the EU, France, Germany, and the United States, has been notified of the action. Despite the legal standoff, ATOME maintains that its other international projects remain unaffected. The Villeta site was intended to produce low-carbon fertiliser for the Mercosur region, with a projected capacity to create 4,000 construction jobs and over 1,000 operational roles while contributing significantly to Paraguay’s GDP.
Comments (0)
No comments yet. Be the first!