As you may recall, Peru demanded cash from Odebrecht ahead of any plea deal talks.
Now the country is cancelling a contract with Odebrecht to build a $7-billion natural-gas pipeline:
Mines and Energy Minister Gonzalo Tamayo said on Monday the Southern Peruvian Gas Pipeline consortium, which is majority-owned by Odebrecht, failed to meet Monday’s deadline to secure financing and would be officially told on Tuesday that the contract will be rescinded.
Mr. Tamayo said the consortium would also be assessed a $262-million penalty for not completing the contract to build the 700-mile-long pipeline to transport cheap natural gas from the Amazon to towns across the southern highlands and on to the Pacific. Odebrecht has a 55% stake in the project. Spain’s Enagas has 25%, and Peru’s Graña y Montero has 20%.
Odebrecht has admitted to paying $29 million in bribes in Peru.
In other Odebrecht news, theBrazilian Supreme Court Justice Teori Zavascki, who
was scheduled to start reviewing testimony in coming weeks from 77 executives and employees of the Brazilian construction group Odebrecht, which last month signed a leniency agreement with U.S., Brazilian and Swiss authorities
died in an airplane crash last Thursday. President Michel Temer will name his replacement, who in turn “can either keep the process moving or bring it to a halt,” according to the Wall Street Journal.
Last week, Colombia said it was working to remove Odebrecht from the country after the firm admitted paying $11 million to secure road and other projects.
