WORLDNEWS
8
US
A new 11.7mile (18.8 km)metro line has been opened inWashington
D.C., US. Built by a consortium led by Bechtel, Phase I of theDulles Corridor
Metrorail Project (the Silver Line), was one of the largest andmost complex
urban rail projects in the US.
The US$ 1.6 billion project was awarded to a consortium comprising
Bechtel Infrastructure andWashingtonGroup International in 2007 on a
design& build basis. This sumwas incorporated into the total project price,
which at the timewas put at US$ 2.4 billion –US$ 2.7 billion.
Among the construction challenges on the project were constructing 6
miles (9.75 km) of elevated track, while a tunnel was also constructed under
one of the city’s busiest shopping districts.
international
construction
september 2014
PANAMA
Agreement reached
on canal dispute
Client and contractor set out co-financing plans
following January’s US$ 1.6 billion dispute on
additional costs.
A
nagreementhasbeen reachedbetweencontractingconsortiumGrupo
Unidos por el Canal, (GUPC) and the Panama Canal Authority
(ACP) which the two parties say will allow the completion of the
canal expansionproject.
GUPC, which comprises Sacyr, Impregilo, JanDeNul andCUSAUrban
Construction, said the variation agreement outlined a plan to co-finance
the scheme, which fell into financial difficulty at the start of this year.
The dispute betweenGUPC andACP related to additional costs of some
US$1.6billion on the project linked to ground conditions.The agreement
follows amemorandum of understanding to resolve the dispute, signed by
the two parties inMarch.
The agreement provides for the completionof theproject by31December
2015, with a number of intermediate steps, such as the delivery of the lock
gates – eight out of 16have alreadybeendelivered toPanama–byFebruary
2015.
The agreement establishes a co-financing agreement between ACP and
GUPC for an additional US$ 100 million each, and the contribution by
GUPC of another US$ 400 million resulting from the conversion of a
performance bond from project insurer Zurich into additional financing.
At the same time, the various claims by GUPC regarding unexpected
costs incurred during the project will be settled through an international
arbitration before the Court of Miami, US, which on 21 July this year
initiated the discussion on aUS$ 180million tranche.
ACP added that construction of the third set of locks was 73% complete.
GERMANY
Bilfinger head
resigns
Roland Koch has resigned as
chairmanof theGerman contractor
Bilfinger’s
Executive
Board
following a profit downgrade for
2014. Herbert Bodner, a former
chair of the Executive Board and
currently a member of Bilfinger’s
Supervisory Board will take Mr
Koch’s place on an interim basis
until the end ofMay next year.
Mr Koch’s resignation came as
the company announced a reduced
earnings forecast for the year due to
falling profits in its Power business
segment, with a recently discovered
loss on a project in South Africa
being one of the contributing
factors.
Mr Koch said in a statement,
“Predictabilityon thecapitalmarket
is an important commodity for a
continuingly successful company
like Bilfinger. As a result of two
profitwarnings inquick succession,
for which I as chairman of the
ExecutiveBoard take responsibility,
this trust has been shaken.”
Bilfinger was ranked no. 34 in
iC’s
Top 200 ranking of the world’s
largest construction companies
and no. 11 in sister magazine
Construction Europe’s
CE
-100
league table of Europe’s biggest
contractors. Bilfinger is the second
largest contractor headquartered in
Germany afterHochtief.
ASIA
Growth
forecast
Developing Asia remains on
track for +6.2% GDP growth
this year according to the Asian
Development Bank’s (ADB’s) latest
economic report. The forecast is
in line with the Bank’s previous
estimates for the region’s 45
countries, which were released in
April.
“Developing Asia as a region
continues to perform well,” said
ADB deputy chief economist
Juzhong Zhuang. “The pace of the
growth moderation in the People’s
Republic of China is in line with
our expectations while the stage is
set for India to pursue reform that
could unlock its growth potential.”
INDIA
Exhibitionon
track
December’s bC India construction
equipment exhibition in Delhi,
India is expected to take up
120,000 m
2
of exhibition space
according. This will make it about
the same size as the last bC India.
The show will be held for the
third time fromDecember 15 – 18
this year at the India Expo Centre
in Greater Noida/Delhi. It will
be its first time in Delhi, having
previously been held in Mumbai
in 2013 and 2011. The inaugural
show took up 88,000m
2
, and grew
to 120,000 m
2
in 2013 when it
welcomed 28,000 visitors.
BRAZIL
Votorantim
figurehead
dies
Former chairman of Brazilian
cement producer Votorantim, Dr
Antônio Ermírio de Moraes has
died from heart failure.Hewas 86.
Raul Calfat, chairman of
Votorantim Participações (VPAR),
said in a statement, “The history of
Votorantim is directly related to the
personal dedication and hard work
ofDr Antônio.”
Votorantim is Brazil’s largest
cement producer and is active
in other parts of Latin America.
Votorantim Group also has
interests in the metals, paper and
agribusiness sectors. The company
was founded in 1919 by José
Ermírio de Moraes, Dr Antônio
Moraes’ father.
Dr Moraes joined Votorantim in
1949. His tenure as chairman in
the 1980s is associated with the
company’s
internationalisation.
He left the group in 2001 when
he was diagnosed with Alzheimer’s
Disease.
Dr Moraes was also politically
active. Among the issues he
was associated with were the
advancement
of
democracy,
improvement of health services and
job creation.
