Troubles deepen for contractor Odebrecht

Brazilian contractor Odebrecht is facing serious issues with regards to projects in Colombia and Peru. In Colombia the contract to build the Ruta del Sol II highway, at present 54% complete, is being terminated. Odebrecht is one of the partners in the The Consorcio Estructura Plural Promesa de Sociedad Futura Concesionaria Ruta del Sol consortium that was carrying out the contract. The consortium partners have also agreed not to claim for any compensation. In Peru meanwhile there is increasing pressure
February 24, 2017 Read time: 2 mins
Brazilian contractor 1305 Odebrecht is facing serious issues with regards to projects in Colombia and Peru. In Colombia the contract to build the Ruta del Sol II highway, at present 54% complete, is being terminated. Odebrecht is one of the partners in the The Consorcio Estructura Plural Promesa de Sociedad Futura Concesionaria Ruta del Sol consortium that was carrying out the contract. The consortium partners have also agreed not to claim for any compensation.

In Peru meanwhile there is increasing pressure on Odebrecht as the firm has been embroiled in a complex legal case. The company is facing the possibility that its troubled IIRSA highway contract will be revised. When the project was first envisioned in 2004 it was expected to cost $1.43 billion but a string of revisions and extra works have seen the pricetag spiral by a colossal 257% to $4.14 billion. The Peruvian authorities are understandably less than satisfied over the situation. There are also concerns over apparent irregularities with the contract, which are currently being investigated.
Finance & Funding Road Structures

For more information on companies in this article

Related Content

  • Pothole problem in UK
    February 28, 2012
    The UK's Road Surface Treatment Association (RSTA) is voicing concern over moves by one London Borough to downgrade the importance of road repairs.
    Read More
  • Italy's strategic tunnel link
    August 21, 2012
    The world's largest tunnelling machine is completing Italy's important road connection between Bologna and Florence - Adrian Greeman reports For just under a decade a huge programme of highway construction has been underway in the mountainous region between Bologna and Florence, realigning a section of the A1 highway nearly 70km long. The new section, through major tunnels and across high viaducts, will greatly increase capacity on Italy's most important highway.
    Read More
  • New Doha highway under construction
    March 18, 2016
    Construction is now underway on the New Orbital Highway in Doha, Qatar. This project is called The New Orbital Highway contract 2 and is one of the largest projects being delivered through the Qatar’s public work authority Ashghal. The work consists of the design and construction of 47km of highway with a five-lane dual carriageway for light vehicles and two truck lanes in each direction. It also includes six viaducts, 17 bridges and underpasses and a 320m cut-and-cover tunnel. This last is particularly
    Read More
  • The US FAST Act: a job left unfinished
    April 4, 2016
    US roads and bridges are crumbling at an alarming rate as state governments wring their hands over the increasingly scarce money for repairs. Enter the FAST Act. But is it enough? US state transportation department officials, as well as highway contractors and operators, breathed a sigh of relief in December. For months the highways infrastructure sector waited anxiously to see where the necessary money for road projects would come from. For several years, the Highways Trust Fund – the usual way of paying f
    Read More

Highlighted Content