End of Odebrecht´s Story?

After multiple attempts to liquidate the contract and collect the bonds for the road works that were awarded to the Brazilian construction company, the Guatemalan government has finally received the money and will be able to tender the works again.

Monday, March 19, 2018

Representatives from the executive board announced that they have already received two bonds corresponding to the road works for 140 kilometers of the CA-2 highway, meaning that the path to bidding for new contracts is practically open.

See history of the road works.

The Minister of Communications, Aldo García, explained to Elperiodico.com.gt that " ... the first action of the process is to receive the 94 kilometers from the 140 established in the contract which the construction company did not finish. This process will end this week, as on March 23 space will be opened up to receive offers from companies that want to participate in the repair of the CA-2, West."

The head of communications added that " ...Then, the CIV will receive the 46 kilometers that Norberto Odebrecht claims to have finished. Upon completion of this stage, it is expected that, in the act of receipt of work, the Brazilian construction company will not sue the State for any matter that is established in the liquidation of the project."

For his part, the president of Guatemala, Jimmy Morales, said that " ...'We managed to receive these bonds, for the record it was much more difficult than you could imagine and there are legal processes that could be harmful for the country, because due process is not being followed.'"

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Road Expansion Remains on Paper

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The Guatemalan government will liquidate the works contract to extend 100 km of the CA2 East highway, which connects the department of Escuintla and the border with El Salvador.

The Ministry of Communications announced that this month they plan to liquidate the contract with Sigma Constructores, which had as objective to expand from two to four lanes the stretch of road that goes from Escuintla and ends at the border Ciudad Pedro de Alvarado, Jutiapa Department.

Guatemala to Claim $122 million from Odebrecht

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Following the Brazilian construction company's abandonment of the road work contract that had been awarded, the government intends to make a claim on the advance payment and performance bails which amounts to $122 million.

The contract consisting of the extension of 140 kilometers of the CA-2 West highway was awarded to the construction company Odebrecht in 2012, however, the company abandoned the work after performing work on only 43 kilometers.  

Progress in Process to Resume Road Works

February 2018

Although they have not finished liquidating the contracts with the Brazilian company Odebrecht, Guatemalan authorities say that the bids to conclude the works are going ahead.

The contracts that the Ministry of Communications intends to terminate early are those corresponding to the extension of 97 kilometers of the CA-2 West highway.

Contract with Odebrecht Ended and New Tender Launched

October 2017

The government of Guatemala has agreed with the Brazilian construction company to bring forward the termination of contract for extending the CA-2 Occidente highway and will launch a tender for three contracts to complete the remaining 97-kilometer stretch.

The contract was awarded to construction company Odebrecht in 2012, and after the corruption cases the that it was involved in came to light, the government of Guatemala decided to negotiate the early termination of the contract. The head of the Ministry of Communications, Infrastructure and Housing (CIV), Aldo García, told Elperiodico.com.gt that "... because of the reservation there has been over the investigation of this case, it can only be anticipated that the agreement reached with the company is under legal review, a company which in 2012 obtained the contract for the extension of the CA-2 Occidente highway for US $399 million."