New favourable decision for Cintra and Ferrovial from Canada

News

The Ontario Superior Court has ruled in favour of 407 ETR Concession Company Limited and dismissed the Province of Ontarios appeal against the arbitration decision issued on 10 July 2004, which stated that the road company did not need any authorisation (change request) from the provincial government in order to increase tolls. The concession of the 407 Express Toll Route in Toronto (Canada) is owned 53.23% by Cintra, subsidiary of Ferrovial.In February 2004, the Ontario government alleged that the road company was not entitled to increase tolls without its prior authorisation and that 407 ETR was in default since it had increased tolls without that authorisation.On 9 February 2004, a legal decision ruled in favour of 407 ETR stating that there was no breach unless this was determined through the procedure envisaged in the concession contract itself. Subsequently, the dispute was submitted to arbitration and, on 10 July 2004, the arbitrator ruled in favour of the company. Nevertheless, the Ontario government appealed against the arbitration decision, which has now been resolved in favour of the road company.This decision is appealable.

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