Summary

Introduction

1. This proceeding implicates the arbitration provisions of Article 8(3) of the Agreement between the Government of the French Republic and the Government of the Argentine Republic on the Encouragement and Reciprocal Protection of Investments, signed on 3 July 1991 and effective since 3 March 1993 (Argentina-France BIT or Treaty).

2. The underlying claims of treaty violation were filed at the International Centre for Settlement of Investment Disputes (ICSID or Centre) in Washington, D.C., pursuant to the 1965 Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention) which entered into force in Argentina on 18 November 1994 and in France on 20 September 1967, as well as the ICSID Rules of Procedure for the Institution of Conciliation and Arbitration Proceedings (Institution Rules) as amended on 1 January 2003, and the ICSID Rules of Procedure for Arbitration Proceedings (ICSID Arbitration Rules) also as amended on 1 January 2003.

3. This proceeding was commenced by three Claimants: (i) EDF International S.A.

(EDFI), a company incorporated and headquartered in France that holds overseas- investment assets of its wholly-owning parent, Électricité de France (EDF), a power company likewise incorporated and headquartered in France; (ii) SAUR International S.A.

(SAURI), also a company incorporated and headquartered in France that specializes in providing water and energy services around the world; and (iii) León Participaciones Argentinas S.A. (León), a company incorporated and headquartered in Luxembourg that was originally created as a wholly-owned subsidiary of Crédit Lyonnais, a company incorporated and headquartered in France, but that was later acquired by Claimant EDFI on 12 March 2004.

4. Respondent is the Argentine Republic (Argentina) to which is attributed the sovereign acts of its provincial territory, the Province of Mendoza as well as those of the provincial regulatory agencies acting on behalf of the Government of Mendoza.

5. The Arbitral Tribunal (Tribunal) has been duly constituted by Professor Gabrielle Kaufmann-Kohler by appointment of Claimants, and Professor Jesús Remón by appointment of Respondent, as Arbitrators, and Professor William W. Park by appointment of the Chairman of the Administrative Council pursuant to Article 38 of the ICSID Convention, as President of the Tribunal.

6. Jurisdiction was addressed on a preliminarily bifurcated basis. A hearing was held on 8 March 2006 and a Decision was rendered on 5 August 2008 confirming the Tribunal's jurisdiction. For purposes of pleadings and oral arguments, this proceeding was further bifurcated into merits and quantum phases. A hearing on the merits was held between 1 and 3 October 2009, which continued from 2 thru 7 November 2009, and on quantum on 14 February 2011. All hearings were held at the seat of the Centre in Washington, D.C.

7. The Tribunal renders this Award to dispose of all issues related to the merits and quantum of this arbitration, registered at the Centre as ICSID Case No. ARB/03/23.

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Disposition of the Case

For the foregoing reasons, the Arbitral Tribunal decides as follows:

I. Respondent has breached its obligations to (i) respect specific commitments undertaken in connection with Claimants' investment and (ii) afford Claimants Fair and Equitable Treatment with respect to their investment.

II. Claimants are entitled to damages in a principal amount equal to US$ 136,138,430 as of 31 December 2001.

III. Interest compounded annually shall accrue at the rate for the ten year U.S. Treasury Bonds for the period from 31 December 2001 up to the date of payment.

IV. Each side shall bear its own legal expenses, including fees for attorneys and experts. The costs of arbitration, including the fees of the arbitrators and the administrative expenses of the Centre, shall be divided on an equal (50/50) basis. The total costs of the arbitration, including arbitrators' fees and expenses, as well as ICSID administrative expenses, is set at US$ 1,631,297.95.

V. Any and all other claims heard before the Tribunal are hereby dismissed.