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.
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.
