(Adds comments from Isolux Corsan)
LA PAZ, April 19 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Wednesday it had rescinded contracts to build a road and a dam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
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)