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Investing.com -- Brookfield Asset Management will dissolve its toll roads subsidiary operating the two busiest highways in Peru, citing unsustainable losses blamed on local authorities, Bloomberg reports.
The subsidiary, Rutas de Lima (RdL), has seen revenue drop by more than 60% in recent years due to suspended toll collection sites. Despite the dissolution announcement, the company stated it will continue operating the roads for now.
The highways had become a contentious issue for Lima Mayor Rafael Lopez Aliaga, a conservative politician who campaigned on promises to end toll payments, alleging they stemmed from corruption.
This dissolution represents an unusual development in Peru, which has worked to establish itself as a secure destination for foreign investment, particularly for major mining and infrastructure companies. Brookfield currently manages approximately $222 billion in infrastructure assets globally.
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