14 May 2009
The Brazilian construction firm, Odebrecht, rejects Ecuador's US $250 million lawsuit which claims that the Brazilian company constructed a hydroelectric plant with serious defects.
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Soure: BNAmericas
Brazilian construction firm Odebrecht, which was expelled from Ecuador in 2008, has accused the Ecuadorian state of violating its rights as a foreign investor and has condemned its decision to take legal action regarding the company's work at the San Francisco hydroelectric plant in Tungurahua province.
The construction firm issued a statement after a lawsuit claiming US$250mn in damages was presented in the name of the state by Ecuador's solidarity fund, which controls the plant's concession holder Hidropastaza. In a statement to the press, Odebrecht demanded "the highest level of technical inspections as we do not recognize the validity of the accusations that have been made." |
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The legal action was presented to the chamber of commerce's arbitration and mediation center in Tungurahua capital Ambato, and the solidarity fund is claiming Odebrecht did not comply with its contract as the plant has shown serious defects, which were listed in an audit carried out by Italy's Eletroconsult.
Meanwhile, Odebrecht also said it will present the results of a technical inspection carried out by an international consultancy it hired.
The San Francisco plant began operating in June 2007. The Brazilian company says work was concluded "in accordance with all contractual specifications and before the stipulated deadlines as requested by Hidropastaza."
Odebrecht claims that in 2008 when problems arose at the plant "because of factors beyond the consortium's control" Hidropastaza refused its offers of help. In that year the plant was paralyzed for around three months, while another four-month stoppage is scheduled for September 2009. |