City officially terminates tranvía contract with Spanish consortium

Jan 18, 2017 | 4 comments

The city of Cuenca announced Tuesday that the contract with Consorcio Cuatro Ríos de Cuenca (CCRC) for management of tranvía construction has been terminated.

Unfinished tram work on Mariscal La Mar. (El Tiempo)

According to city tranvía project coordinator Guillermo Argudo, the decision was made following a detailed legal review. “We are in the process of drawing up the papers to deliver to CCRC notifying them of the termination,” he said. “They left the project three months ago and have shown no indication that they plan to return.”

Argudo added that the city expects CCRC to sue the city but says the government is on solid legal ground in its decision. Based on terms negotiated by former Mayor Paúl Granda, legal issues regarding the contract must be adjudicated in Chile.

The contract with CCRC was for $72, of which $42 million has already by paid.

Argudo said that the city expects to name a new contractor to manage the remaining construction within a matter of days. Among those interested is the Azuay association of engineers.

The city assumed tram project management in October when CCRC left the job. Although substantial construction progress has been made in the historic district since then, little work has been done on other parts of the tramway.

The city began fining CCRC for breach of contract on January 1.

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