Peru Files New Application in New York Federal Court to Probe Brookfield Over Toll Road Corruption Allegations

Peru Seeks Documents in New York Federal Court

The Republic of Peru has filed a new application in a New York federal court, seeking documents from Brookfield Corporation and other associated entities. This legal action is aimed at gathering information for ongoing criminal proceedings in Peru related to an allegedly corrupt toll highway project, the Rutas de Lima S.A.C. concession. The application was filed under 28 U.S.C. § 1782, which allows U.S. federal courts to provide assistance in gathering evidence for use in foreign proceedings.

This development follows a previous attempt by the Metropolitan Municipality of Lima (MML) to obtain similar discovery. In November 2024, U.S. District Judge Lewis J. Liman of the Southern District of New York had initially granted the MML's application. However, Judge Liman later vacated this order in May 2025, ruling that the City of Lima could not prove it was an 'aggrieved party,' a status he stated is reserved for the state on behalf of public interests alleging institutional crimes. Peru's subsequent filing of this new suit in June or July 2025 aims to address the same criminal proceedings.

Background of the Rutas de Lima Controversy

The core of the dispute revolves around the Rutas de Lima toll road concession, a project initially awarded to Brazilian construction giant Odebrecht S.A. The concession, which involved operating and maintaining 115 kilometers of toll roads in Lima, was granted in 2013 for a 30-year period.

In June 2016, Brookfield Infrastructure Partners L.P. acquired a 57% majority stake in Rutas de Lima from Odebrecht for approximately $430 million. Just months after this acquisition, Odebrecht pleaded guilty in U.S. federal court in December 2016 to paying off government officials globally, in what the U.S. Department of Justice called the 'largest foreign bribery case in history.' Peruvian authorities have since alleged that Odebrecht secured the Rutas de Lima concession through bribery of MML government officials.

Ongoing Legal Battles and Allegations

The legal entanglement extends beyond the New York federal court. Criminal investigations in Peru are examining allegations of money laundering and corruption related to the concession, targeting individuals including former Lima Mayor Susana Villarán and former Peruvian President Pedro Pablo Kuczynski, as well as Brookfield Infrastructure Group Peru S.A.C. Prosecutors in Peru have found that the case against Villarán meets the requirements to proceed to trial on corruption charges related to the concession's award.

Meanwhile, Brookfield has initiated its own international arbitration proceedings against Peru, seeking $2.7 billion in damages. The Canadian investment firm filed its claim with the International Centre for Settlement of Investment Disputes (ICSID) under the Canada-Peru Free Trade Agreement, alleging that Peru illegally expropriated the toll roads and prevented Rutas de Lima from collecting tolls. Brookfield asserts that the City of Lima has been ordered to pay $200 million in previous arbitration awards, which remain outstanding.

The current application by Peru in New York is being contested by Brookfield, along with law firm Cahill Gordon & Reindel LLP and Scotiabank, who argue that Peru's suit is a 'regurgitation' of the previously nixed litigation by the City of Lima.