Hernández & Cía. advised AENZA – Signing of the effective Plea Agreement I 15th september 2022

23 - September - 2022

Hernández & Cía. Abogados advised AENZA (formerly known Graña y Montero) achieving the signing of the Final Plea Agreement that ratifies, after 16 months, the preliminary agreement signed between Aenza and the Peruvian authorities in May 2021.

On 15 September, 16 months after the preliminary Plea Agreement between Aenza, the Public Prosecutor’s Office and the Ad HocAttorney General’s Office for the Lava Jato case, the Final Agreement of Effective Collaboration and Benefits was signed by the same parties, with the addition of six former officials of Aenza, who were part of the corporate collaboration, corroborating information provided by the company. Aenza is the largest construction company in the country, listed on the Lima Stock Exchange with a regional presence and the only Latin American construction company listed on the NYSE. This is the second Effective Plea Agreement closed in Peru (the first was Odebrecht) and the first signed by a Peruvian company.

AENZA will pay the Republic of Peru a compensation of more than 480 million soles, to be paid over 12 years and secured by a guaranteed trust, a first rank mortgage and a reserve account for an amount equivalent to the instalment to be paid in the following year.  The amount of the civil reparation, which also covers the liability of the six natural persons who were part of the collaboration, could be higher if Aenza and the Public Prosecutor’s Office reach an agreement regarding three projects about which new information has been received.

One of the most relevant aspects is that the closing of this agreement will allow Aenza to conclude all the criminal proceedings in which it is immersed and focus on its business and new projects.  To this end, the agreement will have to be judicially approved, which should happen as of March 2023. Once the homologation is obtained, a historic legal process will be completed, which will allow Aenza to restructure financially and be able to contract again with the State under certain conditions established in the same agreement.

The agreement establishes that Graña y Montero (the former name of AENZA) was improperly and illegally used by its former officers to participate in different projects executed with Odebrecht and other companies belonging to the “Construction Club” until 2016.  During the negotiation of the agreement, Aenza and the individuals who were part of its collaboration, provided information aimed at clarifying facts that the Public Prosecutor’s Office will use to file criminal charges in the different processes that are being investigated.

  • 480 MM soles
    in compensation

"Following the signing of the preliminary plea agreement in May 2021, Aenza’s controlling shareholder changed as a result of a takeover bid promoted by the IG4 group. The work that led to the final version of the agreement included involving the company's new management in negotiations with the Public Prosecutor's Office and the Ad Hoc Prosecutor's Office, as well as negotiating the definitive conditions necessary for the collaboration to close on satisfactory terms for all parties," said Juan Luis Hernández.


Legal advisors involved:

Hernández & Cía – advisors to Aenza.

Partners: Juan Luis Hernández (Corporate), Gonzalo del Río (Corporate Criminal) and Alfredo Filomeno (Corporate).

Associates: Adriana Tagle, Erick Calla, Fernando Rincón

AENZA in-house team

Daniel Urbina – Corporate Legal Manager

Yon Ruesta, Sánchez Málaga & Bassino Abogados

Counsel to six former Aenza officials.