Santiago Metro consortium vows to fight contract cancellation

Monday, October 20, 2014

Constructora Metro 6, the consortium in charge of building two stretches of Santiago's metro line No. 6, asked the government to reconsider its decision to cancel its contract.

Last week, Metro de Santiago - a state-owned company that runs Santiago's metro services - said it had cancelled the consortium's US$162mn contract, claiming it had failed to fulfill the terms of the agreement.

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Metro de Santiago said it would award pending construction works for the new line to other contractors, in a move to speed up works and launch the service in 2016 as scheduled.

"This decision will cause 1,100 workers to lose their jobs and lead to an unnecessary increase in costs and execution time of works," Constructora Metro 6 said in a paid insert published in the local press.

"Metro 6 urges the government to press the company to retract its unexpected, absurd and irresponsible decision," said the consortium made up of Italian firms Salini and Impregilo.

The company said works were 58% completed. Delays had occurred as a result of changes to Metro de Santiago's contract and work order terms, as well as the discovery of archaeological sites.

Line No. 6 is a US$1.06bn project that will run 15.3km across the capital from central-east Providencia to Cerrillos in the west. It will have 10 stations serving 870,000 residents.

Metro is also building the 22km, line No. 3, a US$1.72bn project with 18 stations between Ñuñoa in eastern Santiago and Huechuraba in the north of the capital.