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

  • Work zone safety solution on busy world highways
    December 3, 2013
    Globally renowned highway work zone safety solution manufacturers have been providing some of their latest systems to protect roadworkers and motorists on high volume traffic highways. Guy Woodford reports Versilis has provided one of its state-of-the-art work zone safety solutions during the rehabilitation of North America’s busiest highway. The Canadian road safety product innovator and manufacturer was retained by the Ministry of Transportation of Ontario (MTO) to install automated traffic control
    Read More
  • Riyadh’s transport infrastructure upgrade programme
    August 29, 2013
    IRF chairman and mayor of Riyadh, Eng Abdullah A Almogbel, discusses the city’s massive infrastructure investment and the pressing need for this development work Saudi Arabian capital Riyadh is fast growing with a pressing need for additional transport infrastructure resulting in a massive investment programme. The oil industry has fuelled Riyadh’s rapid expansion from being a medium sized town just 100 years ago, to its status as a major city today. With the explosion in vehicle use during the 20th ce
    Read More
  • Consortium carrying out Colombian highway project
    July 25, 2014
    In Colombia a consortium will carry out the Perimetral Oriental road contract. The US$463.4 million contract is for a 153km section of road connecting Cundinamarca and Meta, which when complete will cut journey times by two hours compared with the current route. The consortium comprises Israeli company Shikun & Binui and local firm Grodco and Colombiana Inversiones en Infraestructura, which is owned by Spanish company Fomento de Construcciones y Contratas (FCC). The work will take four years to carry out an
    Read More
  • IRF cooperation agreement with Columbia
    February 9, 2012
    IRF Washington announces strategic cooperation agreement with the Colombian Chamber of Infrastructure The IRF Washington Program Center (IRF WPC) and the Colombian Chamber of Infrastructure (CCI) have announced their intent to sign a Memorandum of Understanding (MOU) to cooperate on technology transfer, training and dissemination of best-practices in Colombia
    Read More

Highlighted Content