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City denies construction extension to tram contractor, begins imposing fines

The city of Cuenca moved a step closer to terminating its contract with the Spanish company responsible for managing tram construction.

Completed section of tramway on Gran Colombia.

Four Rivers Consortium of Cuenca (CCRC) was notified last week that its request for a 480-day work extension was rejected and that daily fines would be imposed for work delays. The fine is  $7,214 per day, or .01 percent of CCRC’s $72.14 million dollar contract.

“We cannot accept their demands for extension,” said Santiago López, city coordinator for the tram project. “As of the end of 2016 they are in violation of the terms of the contract and will be fined for failure to deliver the work agreed to.”

López says the city is continuing to make new arrangements for project management and has been in touch with officials of the French company, Alstom, that manufactured the tram hardware.

The city expects to face CCRC in court-ordered mediation or at trial. Due to contract language agreed to by previous Mayor Paúl Granda, all legal action regarding the contact must be conducted in Chile.

  • Tommy H.

    At this rate, the fare per ride will be $2. The tranvia promised rides at what? 25-40 cents? I don’t think so. Those who can still walk, walk to where you want to go.

    • D.J.

      It is silly to speculate what the fare will be at this time.The original idea was to have the bus and tram at the same price so that it would be used.I think that will be what will take place once it is finished and running. The bus rate will and needs to go up to help with the cost factor of running the buses but it can’t be raised that high as the local people can’t afford a large increase. The current rate has been the same since 2003.

    • La Colombiana

      Don’t worry, Johnny, the Colombians can walk just fine and the taxi ride out to your place isn’t really that expensive. Keep the light on. You never know when they’ll arrive.

    • nards barley

      If it’s more than 50 cents I will eat a bowl of mote.

      • StillWatching

        Come on, Nards. You and I both know you will never eat mote.