Canadian investment giant Brookfield Asset Management Ltd. will cease operating a series of contentious toll roads in Peru's capital, Lima, at the end of Wednesday, December 3, 2025. The company's subsidiary, Rutas de Lima, stated it has run out of cash after Peruvian court orders suspended its ability to collect toll payments, making continued operation "materially impossible."
A Concession Mired in Conflict and Corruption Allegations
The dispute centers on the concession for two main highways in and out of Lima. The city has long alleged the contract was obtained through corruption under its previous owner, Brazilian construction firm Odebrecht SA. Odebrecht admitted to widespread bribery in Latin America in 2016 but has not confessed to wrongdoing in this specific case. Brookfield acquired control of Rutas de Lima that same year.
The legal battle is one of the highest-profile infrastructure disputes in Latin America. The former mayor who granted the concession to Odebrecht, Susana Villaran, is currently on trial for corruption related to the deal, though she denies any wrongdoing.
Courts Side with City, Forcing Brookfield's Hand
While Rutas de Lima has won several arbitration awards against the city, local Peruvian courts have consistently sided with Lima's government. These courts have effectively cut off the company's revenue stream by suspending toll collection at virtually all its booths.
In response, the city of Lima announced it is prepared to assume day-to-day control of the highways. Officials confirmed that no tolls will be charged for the foreseeable future. The political dimension is significant: former Mayor Rafael Lopez-Aliaga, who resigned in 2023 to run for president, made ending Brookfield's contract a key promise and has claimed victory over the asset manager.
Broader Legal and Financial Fallout
The local court battles are just one front in a wider conflict. Brookfield has separately initiated an international arbitration case against the nation of Peru itself. The company is seeking a staggering US$2.7 billion in damages, claiming the actions constitute an illegal expropriation of its concession.
This move marks a dramatic escalation in the standoff and underscores the significant financial stakes for the Toronto-based asset manager. The outcome of this international arbitration will be closely watched by global infrastructure investors.
The immediate takeover by the City of Lima ends a turbulent chapter for the vital roadways, but the long-term legal and financial repercussions for both Brookfield and Peru are far from settled.
