Victory for the Romanian state in the dispute with Plaza Centers in the Casa Radio case, which avoids the payment of damages exceeding 400 million euros, according to the ICSID tribunal's decision.

The Romanian state has obtained a victory in the dispute with the developer Plaza Centers regarding the Casa Radio project, thus avoiding the payment of an amount exceeding 400 million euros. The dispute, which has lasted nearly four years, began nearly two decades ago when the two parties signed a public-private partnership for a complex that included a mall, conference centers, a hotel, and office buildings.

The project did not progress, and Plaza Centers sold part of the land. In 2022, the developer requested arbitration at the International Centre for Settlement of Investment Disputes (ICSID), seeking damages that increased to 425 million euros. The Romanian state contested the partnership and sought damages of approximately two billion euros. Recently, the ICSID tribunal decided that each party will bear its own costs, and Plaza Centers will review the decision and its implications. Additionally, the developer has extended the deadline for the sale-purchase of its stake in the project with AFI Europe until December 31, 2026, but there is no certainty regarding the completion of the transaction.