OHL Mexico brings a legal action against the Government of the State of Puebla for recovery of “Libramiento Norte de Puebla”

OHL Mexico has commenced the legal proceedings announced in the relevant event sent to the Mexican Stock Exchange last 10 May, in relation to the decision of the Government of the State of Puebla to revoke the “Libramiento Norte de Puebla” concession, granted to its subsidiary Autovías Concesionadas OHL.

The object of this legal action is to protect its legitimate interests and those of its shareholders, particularly those participating through the Mexican Stock Exchange, against the decision of the Government of the State of Puebla, ordering a sudden and unilateral recovery. Mexico is a country with a solid institutional network, where the rule of law prevails and is upheld, which is why the measure adopted last 9 May is being legally challenged.

OHL Mexico has manifested its surprise with the decision adopted by the Government of the State of Puebla, given that during the 16 months since it came into power its civil servants and the company have been closely collaborating to release an easement of way; this responsibility is inherent to the Government, pursuant to the concession title, and the relevant works were scheduled to begin in May.

The concession has been recovered around the same time as the State Governor announced its plan to promote an overpass over the Mexico-Veracruz highway, at Puebla, a project that conflicts with Libramiento Norte as the document includes an investment protection clause against the tendering of parallel toll roads with the same origin and purpose.

The Puebla Government’s decision affects the rights acquired by OHL Mexico and an investment already made and financed by ING and Scotiabank, amounting to 650 Million Mexican Pesos, to be updated according to what is established in the concession title.

The concession of Libramiento Norte de Puebla was awarded to OHL Mexico in 2008 in strict compliance with the law. The concession contract was signed by the State Governor, the Secretaries of Governance, Finance & Administration, Communications, Transport & Development, Evaluation & Control of the Administration, as well as by the official road authority of the State of Puebla.

Consequently and given that the concessionaire considers that the granting of the concession on 7 March 2008 is totally valid and licit, from a legal and institutional point of view, a challenge is being brought against the resolution of 9 May, passed by the Secretaries of Administration & Finance of the Government of the State of Puebla.