April 20, 2017 / 1:49 AM / 6 months ago

UPDATE 1-Bolivia rescinds contracts with Isolux Corsan

(Adds comments from Isolux Corsan)

LA PAZ, April 19 (Reuters) - Bolivia’s government said on Wednesday it had rescinded contracts to build a road and a dam with Spain’s Corsan-Corviam, a subsidiary of Isolux Corsan SA, pulling contractual guarantees for more than $150 million.

Isolux Corsan IPO-ISOL.MC said in a statement the government had not considered alternatives the company offered and had failed to complete its own contractual obligations.

The company is undergoing debt restructuring in Spain and has also stopped development of power transmission lines in Brazil.

Bolivia’s Minister of Public Works Milton Claros said Corsan-Corviam had signed contracts worth $534 million in 2014 and had missed construction dates.

“We have to take legal action for damages and losses that have been caused,” Claros said.

“They were notified and had time to amend the situation, but as they have not done so... what is left is to execute the guarantees and that is what we are going to do.”

Isolux Corsan’s statement said the company had given Bolivia’s electrical authority numerous alternatives to enable it to continue work on the dam.

It also said the government’s highway authority owed money on the road Isolux Corsan was contracted to build and creditors had staged protests, creating a security risk for its workers. (Reporting by Daniel Ramos; Writing by Caroline Stauffer; Editing by Bernard Orr and Lisa Shumaker)

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