Contract with Odebrecht Ended and New Tender Launched

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.

Friday, October 13, 2017

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 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."

According to García, head of the Ministry of Communications, Infrastructure and Housing (CIV) "... three events will be held to tender the 97 kilometers that are still pending in the stretch of the original project. These relate to the route from San Jose El Idol, Suchitepéquez, to the border town of Tecún Umán in San Marcos."

"... Although efforts are being made to accelerate the process to award the three contracts, Garcia estimated that it will take until January 2018 until work starts and this will only be to complete the two-lane stretch."

See details of tenders for the renovation of the three sections of the road: (all in Spanish)

" Replacement Highway CA-02, section: km 144 to the km. 178. "

" Replacement Highway CA-02, section: km 178 to km. 198. "

" Replacement Highway CA-02, section: km. 211 + 500 to the km.250 + 500. "

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More on this topic

Guatemala: $26 million Awarded for Road Works

May 2018

Following the government's termination of the contractual relationship with Brazil's Odebrecht, contracts for work on the three sections of the CA-2 highway have been awarded.

For the contract to "Reposition Road CA-02, section: km 211 + 500 to km 250 + 500", the companies Construcciones Integrales Avanzadas S.A.

Road Tender Postponed

March 2018

Following the Guatemalan government's liquidation of road works contracts with Brazil's Odebrecht, it has been announced that the date to submit bids in the new contests will be April 6.

The presentation of offers in the new competitions had been set for March 23, and after the Ministry of Communications completely rescinded the contracts with the construction company Odebrecht, representatives of the executive announced that the proposals for the works on 140 kilometers of the CA-2 road, will be received on April 6. 

End of Odebrecht´s Story?

March 2018

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.

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.

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.