Brazil’s Odebrecht asks Peru for proceeds from Chaglla sale

Brazil’s Odebrecht asks Peru for proceeds from Chaglla sale

Peru has no immediate plans to release PEN524mn ($159mn) to Brazilian builder Odebrecht, which it is holding as bond to ensure the company pays for reparations linked to corruption charges in the country, a Justice Ministry official confirmed to LatinFinance.

Odebtrecht has demanded the payment as part of the $1.4bn sale of the 456MW Chaglla hydroelectric power plant to China Three Gorges in April.

Peru diverted roughly $312m of the sale’s proceeds into a fund to ensure Odebrecht settles $200m in fines related to the Lava Jato corruption The company pleaded guilty to charges in Peru in February.

About $132m of the fund’s $312m has been used to settle a debt Odebrecht had with Peru’s tax agency Sunat, while another $25m was used to cover the first installment of February’s fines, said the Justice Minisry official.

The government continues to investigate Odebrecht for other alleged corruption, the Peruvian press reported officials as saying, adding that the $159m the company is requesting is unlikely to disbursed until that process is concluded

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