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

  • Delays for key Brazilian road projects
    March 3, 2016
    A series of major road projects in Brazil now look set to be delayed. Key road widening projects works awarded between 2012 and 2013 may now take longer than the original five year deadline to complete. Six road concession projects were awarded in the period, totalling over 3,000km of roads to be extended or upgraded. The contracts require that at least 10% of the planned work must be complete before any tolls can be charged. This initial phase has been carried out, but later stages to expand the roads have
    Read More
  • Highways England: new agency with long-term investment strategies
    August 18, 2015
    Highways England, created out of the old Highways Agency, was set up on April 1 to oversee a closer relationship between government client and private contractors. World Highways went to a recent forum in London to hear both sides declare their hopes and challenges. Government reforms are often met with a certain amount of scepticism thanks to years of disillusionment over forgotten ministerial promises. Given that, highway contractors in the UK could have been forgiven if they had raised their eyes skyward
    Read More
  • A key stretch of highway will be upgrade in Peru
    April 2, 2013
    Plans are in hand to carry out upgrades to a key stretch of highway in Peru. Work on the VII stretch of the Ayacucho-Abancay road will be carried out by the Kishuara III consortium. The contract is worth US$139 million. This consortium is headed by Spanish contractor firm, OHL, which has a 43% stake in the business. Its partners are Peruvian firm, Constructora TP, and Constructora Malaga Hnos.
    Read More
  • Stonehenge Bypass approved in the UK
    November 13, 2020
    The UK Government has approved the construction of the Stonehenge Bypass.
    Read More

Highlighted Content