Brazil delays minister's trip after Ecuador's ousting of construction company
10/10/2008 16:58
The Brazilian government yesterday postponed Minister of Transportation
Alfredo Nascimento's visit to Ecuador in retaliation for Ecuador's expulsion of
Brazilian construction company Odebrecht.
The decision, made by Brazilian
President Luiz Inacio Lula da Silva, was announced by the Brazilian Foreign
Ministry. Nascimento was scheduled to start the tour next Friday. No new date
has been set.
Odebrecht was expelled from Ecuador after a hydroelectric plant
built by the company had suspended its operation for a year.
The company said
the suspension was due to technical problems. But the Ecuadoran government
blamed it for irregularities in the operation and accused it of refusing to pay
for the repairs in the plant.
On Sept. 23, Ecuadoran President Rafael Correa
ordered an embargo of all Odebrecht goods in Ecuador. The company's project
sites were occupied by the military, and its directors were not allowed to leave
the country. Two of them are still under the protection of the Brazilian embassy
in Quito.
Last week, Odebrecht offered the Ecuadoran government a warranty of
US$43 million in case an international audit ruled the company was at fault for
the defects found in the Sao Francisco hydroelectric plant.
It also agreed to
pay for the repairs in the plant and extend the warranty for another
year.
The Ecuadoran government, however, said the company's offer was not
convincing enough and said it has little trust in the company as defects were
also found in other Odebrecht projects.
Correa last week also threatened to
expel Brazilian state-owned oil and gas giant Petrobras from Ecuador unless the
company agreed to renegotiate its contract, a request was later refused by
Petrobras.
Brazilian Foreign Minister Celso Amorim said Wednesday that
Petrobras has no problems with leaving Ecuador as long as it receives proper
compensation for its investment.
Xinhua
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