The Prestige of the Arbitrator in Public Procurement: Building Trust in a Challenging Market

An arbitrator’s prestige in public procurement is critical in Peru, where disputes between the state and companies frequently arise from regulatory complexity. My role at INDECOPI built my reputation through measures like the precautionary injunction against the labor outsourcing regulation, averting economic harm to thousands of private firms. This prestige, earned through fair and transparent decisions, is essential for arbitrating in a field where trust is scarce.

In a hypothetical case, a company contests the annulment of a construction contract due to alleged corruption in the bidding process. I would leverage my INDECOPI experience to scrutinize the process’s legality and my consultancy background to assess economic impacts, delivering an award that restores trust in the system. The IBA Conference’s "Anticipating M&A trends" session highlights how an arbitrator’s perceived prestige influences acceptance of rulings in public acquisitions.

Another example like a dispute between a regional government and a supplier over delays in a road project. I would use my PROINNOVATE expertise to evaluate technical feasibility and my COMEXPERU experience to understand business expectations, issuing a balanced resolution that enhances my reputation. According to the OECD (2023), prestige stems from both technical expertise and demonstrated integrity—qualities my career ensures.

References:

• OECD. (2023). Public Procurement for Innovation: Good Practices and Strategies.

• Gaillard, E., & Savage, J. (1999). Fouchard, Gaillard, Goldman on International Commercial Arbitration. Kluwer Law International.