Road Expansion Remains on Paper

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.

Tuesday, October 2, 2018

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.

This project was part of the original plan to build a four-lane highway connecting Mexico's border with El Salvador through CA2 East and West.

See details of the work adjudication.

Regarding the works that are coming for this stretch of road, the Minister of Communications, Luis Benito, explained to that "... he expects that the bonds will be delivered during this week, in order to have the commission to receive the work before October 15. After this process has been completed, the CIV will publish two events to contract two new companies to replace the asphalt tape, so that CA2 East will continue to be two lanes, like CA2 West, which left the Brazilian construction company, Norberto Odebrecht, unfinished".

See "Supposed end of Odebrecht's Novel"

The article adds that "... Benito said the company did not maintain the road. In May of this year, the construction company denied ElPeriódico that it was its responsibility. The contractor can give maintenance if the General Direction of Roads orders it and if it has the necessary financial support that the Law establishes, in other words, the respective Certificate of Budgetary Availability, which in this case has not happened either of the two requirements," was the response they gave at the time".

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More on this topic

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.

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.  

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 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."

Awards: Roadworks for $258 million

April 2015

In Guatemala an award was made to the company Sigma Constructores S.A. of a contract for the renovation and widening to four lanes of the CA-2 East route, Escuintla - Ciudad Pedro de Alvarado.

Under the purchase method of 'emergency' and other procedures, the Ministry of Communications, Infrastructure and Housing of Guatemala awarded the contract for maintenance and expansion of the CA-2 East highway, Escuintla - Ciudad Pedro de Alvarado, to the company Sigma Constructores S.A.