Colombia could cancel Magdalena river concession on March 23

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Thursday, March 16, 2017

Colombia's Magdalena river regional autonomous corporation (Cormagdalena) announced that it will take a final decision regarding the firm Navelena's contract for the Magdalena river navigation project on March 23, indicating that the concession may be declared void the same day.

According to the Cormagdalena website, the corporation closed arguments on the hearing on penalties for Navelena and rejected the consortium's petition to provide new evidence, considering that the plea was not relevant to the process.

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The final ruling will be made on March 23. If the verdict is against Navelena, the consortium may appeal the cancelation of the contract.

The 2.5tn peso (US$850mn) contract began the process of expiring on February 23 after Navelena failed to deliver a financial closure on that date.

Navelena is a joint venture between Brazilian conglomerate Odebrecht and Colombia's Valores y Contratos (ValorCon). The consortium has been hit by the bribery scandal surrounding the Brazilian company.

On March 3, it was also fined by Cormagdalena for breaching its contract on dredging the access canal at Barranquilla.