By Edelmiro Franco V. | 2025-01-03

BOGOTÁ -- The still-incomplete Bogotá Metro project is embroiled in controversy over delays in construction and unpaid obligations to local contractors.

Colombia awarded the ambitious undertaking to a Chinese consortium in October 2019.

The project initially was valued at 13.8 billion COP (approximately $4 billion).

Completion of the subway, once estimated to occur in 2028, could be delayed by four years, Ana Teresa Bernal, vice president of the Bogotá City Council, warned last year.

On December 23, W Radio revealed irregularities involving the Chinese consortium Metro Línea 1 S.A.S., comprised of China Harbour Engineering Company Limited (CHEC) and Xi'an Metro.

Several builders and contractors involved in the Metro Line 1 project are dissatisfied with "unpaid obligations by the Chinese consortium overseeing the project," W Radio reported.

Sources told the outlet of having unpaid invoices for up to 150 days, with no clear indication from the consortium when payments would come.

Despite these delays, the consortium "continues to demand compliance" with work requirements and has even assigned new activities without the corresponding contracts, further aggravating the situation.

Breaches of contract

The radio station's report was corroborated on December 23 through a press release issued by the law firm De La Espriella, which represents a local contractor, Metro Project, in its dealings with Metro Línea 1 S.A.S.

The law firm outlined the grievances of its client, citing breaches in planning, execution and payments as outlined in the contracts.

It noted that Metro Project's contract expired on October 23, yet it has continued to fulfill its obligations despite breaches of contract and non-payment by the Chinese consortium.

The disputed contracts involve work valued between 1.5 billion COP ($341,000) and 2 billion COP ($454,545).

De La Espriella's client aims to resolve the issue amicably, "ensuring the project's continuity," the law firm stressed.

However, it warned that if no response is received within the stipulated period, its client would "proceed with a total and indefinite suspension of the work."

Metro Línea 1 S.A.S. has demonstrated a clear intent to "flout contractual obligations, particularly in terms of payments," De La Espriella added.

Last February 1, Bogotá Metro Company General Manager Leonidas Narváez wrote to the Chinese consortium expressing serious concerns about the execution of the project.

In the letter, revealed by W Radio in late December, Narváez highlighted "deviations from the planned schedule" and "inefficiencies in management" by the Metro Línea 1 S.A.S. consortium.

He warned that these issues could create a "risk situation" regarding the project's outcomes and the fulfillment of contractual obligations.

The irregularities involving CHEC and Xi'an Metro are not limited to Colombia; similar complaints have surfaced in other countries around the world.

CHEC, a subsidiary of China Communications Construction Company, has been on the World Bank's blacklist since 2009 for involvement in fraudulent tender practices.

Xi'an Metro, based in Shaanxi province, China, primarily operates in China and is responsible for the construction and operation of the Xi'an subway system.

Notably, neither of these Chinese companies has prior experience with subway or rail projects in Latin America.

Substandard materials

The quality of work on the Bogotá Metro, particularly by Chinese companies, has sparked significant debate.

One major criticism revolves around whether the quality of Chinese companies' work meets the expectations of developed countries.

Additionally, construction delays have led to questions about the efficiency and management capacity of the companies responsible for the project.

Analysts have highlighted various incidents and failures during construction, casting doubt on the quality of materials and labor used.

Furthermore, there are concerns that the technological transfer expected from these Chinese companies has not materialized, hindering the development of local capabilities.