Row erupts after Bolivian government cancels road contract with Isolux Corsán20 April 2017 | By Joe Quirke 0 Comments
The Bolivian government has stripped troubled Spanish construction company Isolux Corsán of contracts worth $150m.
The firm, which recently filed for bankruptcy protection and has stopped the development of power transmission lines in Brazil, is quoted by Reuters as saying the Bolivian government has not considered any alternatives proposed by the company and has failed to meet its own contractual commitments.
Isolux Corsán said Bolivia’s Highway Authority owed money for the road it was contracted to build and that creditors had staged protests.
Milton Claros, Bolivia's Minister of Public Works, said the firm had missed construction deadlines. “We have to take legal action for damages and losses that have been caused.
Isolux Corsán was notified and it had time to amend the situation, but as it has not done so, what is left is to execute the guarantees and that is what we are going to do.”
Isolux Corsán was awarded contracts in Bolivia worth a total of $534m in 2014.
Image courtesy of Isolux Corsán