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

  • Mexico has plans for massive infrastructure investment
    July 19, 2013
    Mexico’s Government has plans for a massive programme of infrastructure improvements across the country. In all some US$314 billion will be invested in infrastructure, of which $47 billion will be targeted at improving the country’s transportation network. Mexico’s national transport and communications ministry, SCT, will manage the projects which include works for highways and airports. The plans are expected to include a combination of private and public funding sources, although further details have yet
    Read More
  • Kosovo's award-winning green highway construction
    March 20, 2012
    A new highway is proving an economic lifeline for the tiny country of Kosovo – Mike Woof reports. Road projects in Europe rarely meet such widespread public approval and support as the new Route 7 highway being built in the new Balkan state of Kosovo. The first sections of the new road opened to traffic in November 2011, with locals turning out in large numbers to celebrate the event. The official opening was carried out by the country’s prime minister Hashim Thaçi, president Atifete Jahjaga, and members of
    Read More
  • Late delivery for Lagos to Ibadan highway upgrade
    November 22, 2018
    Completion of the Lagos to Ibadan highway upgrade in Nigeria will not occur until 2021. The improvement work was initially to have been delivered by 2017. However a string of delays to the work have resulted from insufficient funds and from contractors leaving the jobsite. The current Nigerian Government has now cleared the debts for the project. Around 50% of the highway upgrade has been carried out so far. The contractor Reynolds Construction Company is working on a section from the Sagamu Interchange to
    Read More
  • Construction corruption causes costs to climb
    December 21, 2012
    People are stealing our money ! According to the World Bank Report: “Curbing Fraud, Corruption and Collusion in the Roads Sector” June 2011. “…roads projects around the globe remain plagued by fraud, corruption and collusion…” In some countries, contractors are refusing to participate in tenders/bids because of the extent of corruption. I hope to encourage you to take action to fight Fraud and Corruption (FC). It is impossible to precisely know the extent of Fraud and Corruption. The reason is simple. If F
    Read More

Highlighted Content