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Webuild SPA, the Italian construction firm formerly known as Salini Impregilo SpA, has filed a motion in the D.C. federal court seeking enforcement of a $54 million arbitral award from a dispute with Argentina over a water and sewage service concession. This motion follows the court's rejection of Argentina's statute of limitations defense. Webuild is now asking for judgment on the pleadings or summary judgment for the award, which includes the principal sum of $21.29 million and compounded interest.

The dispute, dating back over a decade, revolves around an award Webuild won in 2011 from the International Centre for Settlement of Investment Disputes (ICSID). The company argues that the court has jurisdiction under the Foreign Sovereign Immunities Act (FSIA), citing both the arbitration and waiver exceptions. Argentina had agreed to arbitrate under a bilateral investment treaty with Italy and had ratified the ICSID Convention, which mandates that ICSID awards be enforced in contracting states' courts.

In response to Webuild’s complaint filed in September 2021, Argentina argued that the claims, including interest, were barred by the applicable statute of limitations. However, in a November 19 order, U.S. District Judge Reggie B. Walton rejected this defense, ruling that the 12-year statute of limitations applied to the enforcement of ICSID awards, not the three-year period argued by Argentina.

Judge Walton’s decision aligns with two prior rulings from Washington, D.C. and New York federal courts involving Argentina. These courts determined that the most appropriate statute of limitations for enforcing ICSID awards is that which applies to final judgments from other states’ courts.

The dispute itself dates back to a water and sewage service concession awarded to an international consortium, including Impregilo, in 1999. The project faced multiple issues, including difficulty collecting payments and regulatory restrictions on tariff increases. Eventually, in 2007, Impregilo initiated arbitration, which resulted in the ICSID award. The tribunal found that Argentina had violated its investment treaty with Italy by failing to treat Impregilo fairly.

Webuild, now seeking to enforce the award, is represented by Thomas C. Childs of King & Spalding LLP, while Argentina is represented by Carmine D. Boccuzzi Jr. of Cleary Gottlieb Steen & Hamilton LLP. The case is being heard in the U.S. District Court for the District of Columbia, under case number 1:21-cv-02464.