Peru Plans to Terminate Odebrecht Pipeline Contract
Peru said Monday that it plans to terminate Brazilian engineering conglomerate Odebrecht's $5 billion natural gas pipeline contract after it said it would miss a key financing deadline for the project.
Energy and Mines Minister Gonzalo Tamayo added on local broadcaster RPP that the government would assess the value of the partially-built project and schedule a new auction as soon as possible.
The Odebrecht-led consortium that won the rights to build the pipeline in 2014 announced on Friday that it would not be able to meet a financing deadline this week and was waiting for notification to begin the process of returning the contract to the state.
Odebrecht controls a 55 percent stake in the project, Spain's Enagas SA has a 25 percent stake and Peru's biggest construction group Grana y Montero owns 20 percent.
(Reporting By Mitra Taj)
