More firings announced in third bridge project
The Brazilian construction company Norberto Odebrecht, in charge of the project Bridge III over the Orinoco, which will connect Bolívar state and Guárico, made the decision to fire 500 laborers in coming days for lack of budget, union sources say… 300 fathers and mothers were tossed off the jobsite at the beginning of 2010 for the same reason.
Norberto Odebrecht, the Brazilian company in charge of the project, has run into financial problems since 2008 because the Public Works and Housing Ministry doesn’t release the required money.
Up to now, the state owes the contractor, $250 million from 2009 and $750 million corresponding to the 2010 budget, for a total of $1 billion, just for this project.
Odebrecht is also … developing part of the Caracas metro, the El Diluvio reservoir in Zulia… Union officials doubt the bridge can be inaugurated on time in 2012… In addition the Alumunim City and the train are suffering delays for lack of budget.
Assuming this report is right: I don’t get is how the government can remain behind on so many payments with oil above $80, even as foreign reserves fall. Is it all part of a clever and sustainable plan, in which human needs get covered before corporate greed? Or is this a pyramid scheme collapsing?