Although its parent company filed for bankruptcy protection two weeks ago, Brazilian construction firm OAS Construtora has told the T&T Government it is in good financial condition and will be able to complete the $7.4 billion Solomon Hochoy Highway Extension by May 2016.
An OAS team, including country superintendent Rodrigo Ventura and several board directors, met with Works Minister Dr Suruj Rambachan and National Infrastructure Development Company (Nidco) chairman Dr Carson Charles on Monday to discuss concerns about the project.
Charles later told reporters that contrary to claims made by Opposition Leader Dr Keith Rowley, he had no information that OAS was withholding payments to local contractors.
“If this is happening, we have received no reports. I will have to find out whether this is so,” Charles said.
He said that dozens of local contractors and suppliers were also providing goods and services to OAS, the main contractor on the billion-dollar highway project. Charles said OAS directors from Brazil flew to T&T last week to discuss the project.
“Despite constraints in Brazil, that is not preventing the company from doing work here. We understand that OAS’s parent company filed for bankruptcy protection, which is a provision whereby the court gives them protection to pay off their debts in an orderly fashion by selling assets. The protection order gives them time to satisfy all their creditors,” Charles said.
“OAS chairman and members of the board have informed us of how they plan to complete the work. The plan seems feasible and we are satisfied.
“We continue to pay them for such works they have undertaken. We took a loan so we have the money. OAS operations in Trinidad are continuing because our payments are up to date.”
Charles said OAS would give weekly updates to Nidco and the ministry on the progress of the highway construction.
“If you go on the site you will see works are still going on. They are busy working on the segment from St Mary’s Junction to Grant Road,” Charles said.
He said once the road was inspected and passed it would be opened later this month.
Rambachan said he asked OAS officials to ensure that all local contractors were paid and they assured him the company was making timely payments. He said if any contractor was having problems with payments they should make a report to Nidco, the supervisory agency.
Local contractors, including Kalco Limited, said yesterday that they were being paid on time.
“We are not sure if suppliers and other contractors are being affected,” a Kalco official said.
Sources told the T&T Guardian there had been delays in the past with payment of fees to some contractors, including Ansad Services Limited. A source at Namalco Construction Services also said the company ended its relationship with OAS in 2012 because of problems with payment of fees.
Rowley warning
At a political meeting last week, Opposition Leader Dr Keith Rowley had warned that the highway project was in trouble because Brazilian company OAS Grupo, OAS Construtora’s parent company, was in the midst of bankruptcy proceedings due to the corruption scandal it was currently embroiled in.
“Right now I could tell you that the accounts office there is without any local input. Only Brazilians inside there operating with a satellite to a bankrupt company in Brazil and of course, the local contractors who have been working for them are now in great danger because they are not being paid and they are hoping that this will remain silent until after election.”
Earlier this month, Grupo OAS sought bankruptcy protection following a corruption scandal involving one of its biggest customers, state-owned energy company Petrobras. The company filed for court protection to renegotiate its debts with creditors and suppliers because its access to finance has been severely restricted since the end of last year.
OAS executives, along with officials from some of Brazil’s largest construction firms, have been charged with money laundering, corruption and criminal conspiracy in an alleged kickback and bribe scandal at Petrobras.