LatinNews Daily Report - 27 April 2012

Brazil  | Delta abandons TransCarioca.  On 26 April the troubled company Delta Construções abandoned the TransCarioca rapid transit bus line in Rio de Janeiro. Due for completion ahead of the 2014 World Cup, TransCarioca will link Barra da Tijuca with Galeão international airport.  Delta’s partner in the project, Andrade Gutierrez, will assume Delta’s tranche and complete the project, it indicated yesterday. Delta owned the concession for Lot 1, corresponding to 26km between Barra and Penha. The TransCarioca was budgeted at R$798m (US$423m), of which Delta was responsible for 42%. The fate of Delta is unclear, amid an unravelling political graft scandal involving senior management at the company. Delta is the biggest recipient of public contracts under the federal government’s US$350bn national infrastructure scheme known as the Growth Acceleration Program (PAC). Planning Minister Miriam Belchior yesterday insisted that the pace of new PAC concessions would not be affected by the scandal. However she did not comment on the fate of existing projects tendered out to Delta, which include works for the 2014-2016 World Cup and Olympic tournaments.

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