Public works contractors only to receive state money for project advances: Govt

Colombian Transport Minister German Cardona said that public works contractors from now on will only receive state money for progress made in projects, due to repeated instances of failure to complete the works.

Cardona said that contractors often receive government advances, take the money, and leave the works uncompleted, Caracol Radio reported Wednesday.

“This situation already made a crisis, wherever one goes in Colombia they ask them about the works and they always say that the problem is that the contractor received an advance of 50 percent, did 20 percent [of the project] and left. The drop that made the cup overflow is the Valencia Bridge in Antioquia, the contractors received a generous advance and left the project abandoned,” said the minister.

As a result of this, the minister said that starting now, contractors will have to initiate the works with their own money or with resources from the financial system, which has more than sufficient funds.

Cardona said that projects that are currently in the process of being initiated will function in the new manner, stating that, “The bids that we are now taking, that already have two packets, are going to be managed in this manner. The state resources will be ready to support the good development of the projects.”

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