Petrobras and the City of Fortaleza break with Delta.

– Delta Construções is publicly dismantling itself. This Tuesday, the 15th, Petrobras and the City Hall of Fortaleza announced the termination of ongoing contracts with the company.

Below are the respective news reports:

Vitor Abdala, reporter for Agência Brasil, Rio de Janeiro – Last week, Petrobras terminated two contracts with the engineering company Delta for the construction of modules for the Rio de Janeiro Petrochemical Complex (Comperj) in Itaboraí, Greater Rio. However, the state-owned company maintained a contract with Delta for the renovation and modernization of the Acid Water Treatment Unit at the Duque de Caxias Refinery (Reduc), also in Greater Rio.

According to Petrobras, the two contracts were terminated due to "poor performance" by the two consortia comprised of Delta and the companies TKK Engenharia and Projectus Consultoria: Itaboraí URE and Itaboraí HDT.

The Itaboraí URE Consortium was responsible for the construction and assembly of the Sulfur Treatment, Recovery and Storage Unit. The Itaboraí HDT Consortium would construct the Naphtha Hydrotreatment Unit. The two contracts had a total value of R$ 843,5 million.

The state-owned company informed, through a statement, that "it is studying the best solution to avoid impacts on the Comperj schedule".

Macario's Blog _Fortaleza - The construction company Delta has abandoned the urban mobility works in the municipality of Fortaleza that are planned for the World Cup. The information was confirmed by the city hall of the capital during a press conference on Tuesday afternoon (15). A new bidding process will be opened and the start of the works will be delayed by at least another 90 days.

The company Delta is involved in a series of corruption allegations in a scheme allegedly run by illegal gambling operator Carlinhos Cachoeira. The construction company had already abandoned projects related to the 2014 World Cup in Rio de Janeiro.

Debt

According to information released during the press conference, the city of Fortaleza owes Delta R$ 5 million.
Construction halted for 90 days.

The works, which should have started in May, are at risk of being stalled for at least another 90 days. The city hall of Fortaleza will open a new bidding process and estimates that it should select a new company within 30 days.

Once the winning bidder is selected, the construction company will have up to 60 days to resume work.

During this period, the company must present new projects, begin hiring, and assemble the necessary structure for the services to proceed.

What does Delta say?

In a statement distributed to the press, Delta states that, given the "current corporate situation of the company," it cannot commit to delivering the project within the deadline stipulated in the contract, set for September 2013, and that for this reason it has opted for an "amicable termination."