In mid-September, the government of Evo Morales decided to terminate its contract with the Brazilian company
Brazil's ambassador to La Paz, Frederico Cezar de Araujo, said that his government "accepts the decisions" made by the Bolivian justice system regarding the Brazilian construction company Queiroz Galvao for breach of contract in this country.
In mid-September, the government of Evo Morales decided to terminate its contract with the Brazilian company Queiroz Galvao due to deficiencies and "non-compliance" in the construction schedule of a highway in the south of the country.
Shortly afterwards, the Minister of the Presidency, Juan Ramón Quintana, stated that the government would conduct audits to prove the alleged irregularities committed by Queiroz Galvao in the construction of the highway that connects the regions of Chuquisaca, Tarija and Potosí.
The state-run Bolivian Road Administration (ABC) was also authorized to hire lawyers to initiate "legal and administrative actions" against Queiroz.
"I don't know what the agreement is between them (the Bolivian government and the company), but what I can say is that I perceive that Queiroz Galvao is willing to continue talking," Cezar de Araujo told local media.
The Brazilian firm was awarded the contract to build the 420-kilometer highway, which aims to improve Bolivia's connections with Paraguay and Argentina, for a cost of $180 million.
The construction company has already announced that it will seek compensation from the Morales government for the losses resulting from the termination of the contract, a decision it described as "unilateral and unjustified".
According to Queiroz Galvao, the international consultants hired by both parties to determine the causes of the cracks detected in the route concluded that the problems arose from "causes unrelated to the execution of the services and resulting from the severe climatic conditions" of the region.
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