Guatemala highway stalled causing problem

A stalled highway project in Guatemala is causing serious problems for the country.
June 28, 2017 Read time: 1 min

A stalled highway project in Guatemala is causing serious problems for the country. Construction work on the CA-2 Occidente highway project was halted following investigations into the practices of Brazilian contractor Norberto Odebrecht. The work is only partially complete, with just 30% of the construction having been carried out. However the contractor has already been paid around 70% of the funds required to build the highway.

This leaves Guatemala’s Ministry of Communications, Infrastructure and Housing (CIV) in a difficult position. CIV may have to formally annul the previous contract and offer the remainder of the works due for completion under a new tender process. However recovering the funding already paid out to the Brazilian contractor may be challenging, given that the firm is immersed in financial problems following investigations into its business practices in its home country and elsewhere in Latin America.

Finance & Funding Road Structures

Related Content

  • Brazil’s Serra do Cafezal Highway
    July 29, 2015
    Brazil's improved Mercosur route will boost capacity and cut travel time - Mauro Nogarin writes. The Régis Bittencourt Highway is one of the main access routes of the Mercosur traffic. It has a length of 400km and connects the main cities of São Paulo and Curitiba, which allows for products to enter from the southeast toward the rest of the southern part of Brazil and later transit to Argentina, Paraguay and Uruguay. Products also flow into Brazil from Mercosur through this major highway. The cost of the hi
    Read More
  • Controversial Russian bridge opens
    August 10, 2018
    The first stage of a controversial Russian bridge project is now complete, with the link having been opened to use by cars and buses. The Kerch Strait bridge spans the Black Sea, connecting Russia’s Taman Peninsula in Krasnodar with Crimea, the latter having been controversially annexed by Russia from Ukraine in 2014. The official opening of the 19km-long bridge was carried out by Russia’s president, Vladimir Putin, who drove across the link in a Russian-manufactured Kamaz truck to reach the city of Kerch.
    Read More
  • US highways needs investment
    July 1, 2015
    In the US, the president recently signed a short-term extension for highway funding. This is a two-month extension that will provide funding for highway infrastructure until the end of July. But it is a very temporary measure made as the US Government has so far been unable to agree the longer term deal that will guarantee highway investment. The Highway Trust Fund is in particular need of investment and such a short-term political patch cannot provide the necessary solution to help boost the US constru
    Read More
  • Expectations for growth of UAE infrastucture
    February 9, 2012
    The INTERMAT Middle East event is being launched at a pivotal time of major infrastructure development in the region. As with most sectors, the highways industry has not had a fantastic 18 months in the Gulf. Not only has the recession impacted the delivery of projects across the board, GCC Governments' attention have been switching increasingly to rail, as plans to roll out a Gulf-wide rail system gather steam. GCC countries will invest over US$119.6 billion in infrastructure projects over the next decade
    Read More

Highlighted Content