A toll booth on the Panamericana Norte highway in Lima on June 22.
Photographer: Fabiola Granda/BloombergBrookfield's Bet on a Road Becomes a $2.7 Billion Headache in Peru
Protests, court fights, default fears and a populist mayor nicknamed Porky. Brookfield's foray into Peru isn't quite what it signed up for.
Brookfield Asset Management was banking on years of steady profits when it took over three toll roads in fast-growing Lima, Peru. Instead, it stumbled into a political minefield.
The tolls spawned public protests over the costs to Lima residents, corruption charges against a local official and disputes between Brookfield and both the country and its capital city. At present, a populist mayor nicknamed Porky has made killing the toll contract his singular goal, and Brookfield’s latest arbitration asserts Peru illegally seized the roads.