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

  • Colombian highway projects under development
    June 29, 2018
    A finance package has been secured in Colombia for the Autopista al Mar 1 highway project. A loan worth close to US$206 million is being provided by the national development bank, Financiera de Desarrollo Nacional (FDN). The highway forms part of Colombia’s 4G infrastructure development plan and the finance package will be provided in three separate tranches. The construction work is being carried out by a consortium comprising Strabag, Concay and Sacyr Concesiones. The project will upgrade the 71km
    Read More
  • Russia to commission new Moscow-St Petersburg highway by 2020
    June 20, 2017
    Final delivery of the final stretch for Russia’s key highway project looks set to be delayed – Eugene Gerden writes. I now looks as if Russia’s most ambitious project in the field of road building in recent years, the building of a new high-speed road link between Moscow and St Petersburg, the country’s largest cities, will not be complete in time. The project was set up by the Russian government and several private investors. According to initial state plans, building of the new road should have been compl
    Read More
  • Studies for Peruvian road project
    May 11, 2022
    Studies are being carried out for a key Peruvian road project.
    Read More
  • Lima's massive $2 billion airport project
    March 4, 2025
    Peru’s capital, Lima, is to benefit from a massive new international airport, which will be one of the largest in Latin America – Mike Woof writes
    Read More

Highlighted Content