Ecuador bars Odebrecht from new infrastructure contracts
The Andean nation becomes the third country to prohibit the Brazilian builder from developing new public works projects
Ecuador has barred government entities from
awarding public works contracts to Brazil's Odebrecht after the
company admitted to making $33.5m in bribes over the past
"During the investigation of Odebrecht's contracts
in Ecuador, state institutions, for now, cannot hire the
company," Attorney General Galo Chiriboga said in a tweet. The
ban includes the federal, provincial and city governments.
Ecuador becomes the third country in the region to
prohibit Odebrecht from signing contracts for new
infrastructure projects, following Panama and Peru. According
to a plea agreement with the US Justice Department, Odebrecht
$59m in bribes in Panama and
$29m in Peru.
Odebrecht's bribes helped the company win $116m in
contracts in Ecuador. Odebrecht's projects in the country
include a $1.5bn contract to build part of the Quito subway
system in a consortium with Spain's Acciona. The Brazilian firm
is also working on the expansion of a deepwater port in the
city of Manta and the construction of the Pascuales-Cuenca
pipeline, among other projects.
Odebrecht and its petrochemical affiliate Braskem
agreed last month to pay BRL6.93bn ($2.12bn) in fines in
Brazil, Switzerland and the US.