Government says Cuenca acted properly in ending tram contract; Signing of new contract delayed

Ecuador Assistant Attorney General Diego García reported Monday that the Municipality of Cuenca had good reason to terminate its project management agreement with the Four Rivers Consortium of Cuenca (CCRC). The city is in a mediation with CCRC in a court in Santiago, Chile.

Tram contract signing is delayed.

“There are clear cases of breach of the tram contract by CCRC and there are reports and audits to back this up,” García said.

“Obviously, the final opinion rests with the arbitration panel, but we believe that there is strength in the city’s defense arguments that they acted with professionalism and responsibility,” he said.

Several members of the Cuenca municipal council had requested the review by the attorney general’s office to determine if the city acted properly in terminating the contract.

Meanwhile, Mayor Marcelo Cabrera announced Tuesday that the signing of a new tram project management contract with French consortium ACTN Cuenca Tranvía has been delayed two weeks. He said that that determining technical details of the contract require more time than anticipated.

“We are moving forward with this, resolving issues with ACTN that must be completed before we can sign the contract,” the mayor said.