Mexico’s Supreme Court confirms the legalityof the Mexiquense Beltway concession awarded to OHL México

September 9, 2016

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The Supreme Court of Justice of the Nation, Mexico’s highest court  (equivalent to the Spanish Supreme Court), has handed down a ruling, which cannot be appealed,  confirming that the Mexiquense Beltway concession granted to OHL México is legal. 

The legality of this concession is evident from the decision handed down by the Court, rejecting the appeal for review number ADR 427/2016 filed by Gregorio López Ortega, which demanded a decision with respect to the acts through which the Secretariat of Communications of the State of Mexico granted the concession for the construction, exploitation, operation, upkeep and maintenance of the Mexiquense Beltway to OHL México, as well as other acts associated with the concession. 

During 2014 and 2015, the company Tecnología Aplicada Infraiber, S.A. de C.V and a number of natural persons, including Gregorio López Ortega, filed several administrative claims with practically the same allegations, which have been progressively dismissed. For this reason, the ruling also signifies a legal victory of OHL México on facts disputed by Infraiber, which maintained claims similar to those rejected in the decision. 

On the 7th of September, the Second Division of the Supreme Court of Justice of the Nation reviewed one of these trials (appeal for review number ADR 427/2016) filed by Gregorio López Ortega against the judgment handed down by the Third Collegiate Court on Administrative Matters of the Second Circuit, rejecting the appeal and confirming the dismissal of the administrative proceeding initiated against the Mexiquense Beltway Concession Agreement. 

A few of the administrative acts against which the appellant filed claims are listed below: 

  • The Concession Agreement
  • The First Amendment to the Concession Agreement
  • The Second Amendment to the Concession Agreement
  • The Third Amendment to the Concession Agreement
  • The Fourth Amendment to the Concession Agreement
  • The extension of the Concession period, the approval of the Additional Increases and the alleged approval for capitalizing the profit or return that OHL is entitled to collect charged to the Mexiquense Beltway, stipulated in the Fifth Amendment
  • Each and every one of the recognitions made by the Highway, Airport, Related and Ancillary Services System of the State of Mexico (Saascaem) and/or the Secretariat with respect to the investment by OHL eligible for being recovered, together with the agreed returns to be charged to the Mexiquense Beltway

In view of the foregoing, through this ruling handed down by the Supreme Court of Justice of the Nation, the inadmissibility of the actions attempted by Gregorio López Ortega against OHL México is confirmed, since the aforementioned decision is final and cannot be appealed. 

Today the highest court of the country has recognized the legal reasons set forth by OHL México, making it clear that the concessions granted to the company have been processed according to the law.

OHL México will continue to follow up any actions intended to discredit the conduct of the company and reiterates that it will continue to use all of the legal resources available to it in order to exercise its rights and to safeguard the assets of its shareholders.

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