Colombia cancels Odebrecht road contract

The Colombian National Infrastructure Agency (ANI) has cancelled a US$1.89 billion highway construction contract with Odebrecht.

The Brazilian contractor is the majority partner in a consortium that won the 25-year public private partnership (PPP) contract in 2010.

The project includes the building and operation of concessions on the Ruta del Sol II highway, connecting Puerto Salgar with San Roque.

Colombia’s public prosecutions office reported there is evidence to suggest Odebrecht paid bribes to win the contract.

It alleges that, in 2009, Odebrecht handed over US$6.5 million to former transportation vice minister, Gabriel Garcia, to secure the deal.

The consortium, Concesionaria Ruta del Sol, comprises Norberto Odebrecht, Odebrecht Investimentos em Infra-estructura, Estudios y Proyectos del Sol, Episol and CSS Constructores – with the Brazilian firm owning 62% of the shares.

The move by ANI follows the Peruvian government’s decision to force Odebrecht to shut down all of its operations in the country.