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

  • Kosovo's award-winning green highway construction
    March 20, 2012
    A new highway is proving an economic lifeline for the tiny country of Kosovo – Mike Woof reports. Road projects in Europe rarely meet such widespread public approval and support as the new Route 7 highway being built in the new Balkan state of Kosovo. The first sections of the new road opened to traffic in November 2011, with locals turning out in large numbers to celebrate the event. The official opening was carried out by the country’s prime minister Hashim Thaçi, president Atifete Jahjaga, and members of
    Read More
  • Honduras highway section remains unfinished
    January 7, 2019
    Construction of the Canal Seco highway in Honduras, which links the country’s Atlantic and Pacific coasts, still has to be completed.
    Read More
  • Pan-European enforcement of driving laws due
    September 30, 2013
    Pan-European enforcement of driving regulations should catch offenders and help improve Europe’s road safety - Mike Woof reports. Agreements are being reached that will see Pan-European enforcement of driving regulations. Drivers will now face being penalised for any offences committed in other European countries. The change is due on 7th November 2013. After this date EU Member States will commence the cross border exchange of data relating to road traffic offences. For this scheme to work, eight offences
    Read More
  • Ferrovial loses control of Canada’s 407 Express Toll Road
    August 27, 2019
    Ferrovial has lost control of the 407 International highway in Canada, one of the Spanish group's star assets. The Supreme Court in the province of Ontario has ruled in favour of co-shareholder pension fund Canada Pension Plan Investment Board to buy another stake - 10.01% - in the highway. The shares are up for sale by another shareholder, Montreal-based global infrastructure engineering firm SNC-Lavalin. The court denied Ferrovial, which already has the largest shareholding at 43% in the highway, th
    Read More

Highlighted Content