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

  • Mumbai’s new coastal transport link
    July 6, 2022
    Mumbai’s new coastal road presents an ambitious and challenging project that will help improve the lives of the city’s inhabitants - Mike Woof writes
    Read More
  • Costa Rica concrete repairs
    February 15, 2012
    Work has started on the long awaited San Jose-Caldera Highway in Costa Rica, following numerous delays and setbacks. The new 77.5km highway will be used daily by more than 81,000 vehicles, reducing the travel time between the Central Valley and the Central Pacific Coast by at least 30 minutes.
    Read More
  • Solution found for Colombian tunnel project?
    March 12, 2015
    A solution seems to have been found for Colombia’s long-running La Linea Tunnel project. Work has been delayed on the tunnel for a number of reasons and on a number of occasions, most recently due to funding issues. But previous delays were due to such diverse causes as technical challenges posed by the difficult conditions and a lack of suitable insurance cover. The Colombian Government has come to an agreement with the Segundo Centenario consortium building the tunnel that will see construction activity r
    Read More
  • $165 million for Colombian road project
    August 7, 2025
    A $165 million funding package is helping finance a key Colombian road project.
    Read More

Highlighted Content