Economy

Delays by Chinese subway-building consortium devastate Bogota businesses

For over three years, street closures and blockades have paralyzed one of Bogota's busiest areas. Meanwhile, subcontractors for the Chinese consortium seek payment of overdue debts.

Workers during construction in the pedestrian areas of the Calle 72 interchange, a key component of Bogota's coming subway line. Local businesses have suffered the severe impact of repeated delays by the Chinese consortium building the subway. [Video Canal Capital]
Workers during construction in the pedestrian areas of the Calle 72 interchange, a key component of Bogota's coming subway line. Local businesses have suffered the severe impact of repeated delays by the Chinese consortium building the subway. [Video Canal Capital]

By Giselle Alzate |

BOGOTA -- Just a few businesses in a sector of the Colombian capital survived the delays caused by the Chinese consortium responsible for building Bogota's still-incomplete First Metro Line.

The work dragged on for more than three years.

During that time, many other businesses failed. Signs reading "For Sale," "Closed" and "For Rent" now cover the doors and windows of former shops, restaurants and other businesses that once attracted a steady flow of customers.

The interchange at Calle 72, a key part of the coming subway, was originally set for completion in April 2023.

Workers during the construction of the Calle 72 interchange, a crucial part of Bogota's coming subway line. The interchange initially was set for completion in April 2023. After multiple delays, the roads finally opened on February 17, though pedestrian access remains disrupted. [Bogota Metro Company]
Workers during the construction of the Calle 72 interchange, a crucial part of Bogota's coming subway line. The interchange initially was set for completion in April 2023. After multiple delays, the roads finally opened on February 17, though pedestrian access remains disrupted. [Bogota Metro Company]

However, multiple delays pushed the deadline to last October. Further setbacks postponed the delivery to late January, and following yet another delay, authorities finally allowed vehicular traffic on February 17.

The work, which began in September 2021, is still proceeding in pedestrian areas, disrupting businesses in this once-thriving commercial hub in northern Bogota.

Frustration, anger and bankruptcies

For three and a half years, street closures and pedestrian blockades have crippled one of Bogota's busiest commercial areas, preventing shoppers from reaching businesses and blocking vehicle access.

The impact has been devastating. Dozens of shops and restaurants have shut down, and many have been forced into bankruptcy.

"Without exaggeration, we were better off during the pandemic," said merchant Oscar Cristancho in an article published by El Espectador on February 4.

"Back then, we sold little, but at least there was a flow of customers. Even behind closed doors, we could manage the financial situation. But what we're experiencing now, in terms of business and economic activity, is far worse," he said.

Cristancho's sales have plummeted 80% and foot traffic has all but disappeared.

"With all these delays, the outlook doesn’t seem to be improving anytime soon," he added, visibly frustrated.

Bogota councilor Heidy Sanchez echoed his concerns, saying more than three years of delays have been "enough to bankrupt the entire surrounding commerce and condemn the city to an unprecedented traffic jam."

"Irreparable losses, for which the (Chinese) concessionaire has paid for only 60 days of delays," Sanchez added in the El Espectador article.

Devastating impact

The Chinese consortium Metro Line 1 -- led by state-owned firms China Harbour Engineering Company (85%) and Xi'an Metro (15%) -- has now promised to finish all work in the area by March 30.

"We are one of the most affected businesses here, but we wanted to keep pursuing this dream we've had for so long," said the owner of a restaurant in the area, whom Noticias Caracol did not identify, in a video posted in February.

His business once had 10 employees, but the prolonged delays forced drastic cuts.

"Now, there are only two of us: the chef and me. I work as waiter, cashier and owner," he explained.

Although vehicle traffic has gradually resumed following the reopening of roads, the damage is already done. Many business owners are now asking Bogota's mayor's office for support to stay afloat.

After the long-overdue completion of the interchange, a group of local merchants staged a small protest on February 17 over the delays.

"I have seen firsthand the problems that Metro Line 1 has caused us. The impact has been devastating -- many businesses in this sector have been wiped out," Chapinero town councilor Nicolás Velasco, who joined the protest against both the Chinese firm and the city government, told El Espectador.

Bogota Mayor Carlos Galan and the Chinese consortium officially marked completion of the interchange on February 17 at 3 am, a time that they deliberately chose to avoid complaints and protests from those affected in the area, merchants allege.

The consortium now faces fines of almost $190,000 for the delays in completing the Calle 72 interchange.

Consortium flouts obligations

At the end of February, one of the local subcontractors working for the Chinese consortium filed a complaint with the Bogota Chamber of Commerce, seeking to force the company to pay outstanding debts exceeding 9.5 billion COP (about $2.3 million).

Tensions had been building for months between the Chinese consortium and its contractors, with subcontractors growing increasingly frustrated over unpaid obligations for work completed on the project, La W Radio reported in February.

The report states that both sides attempted mediation but were unable to reach an agreement.

In early January, reports surfaced that local contractors working on the first line of the Bogota Metro had not received payments during the holiday season because of delays from the consortium.

These payments remain outstanding.

The Bogota Metro project, still incomplete, has been marred by construction delays, accusations of substandard materials and financial disputes with local subcontractors.

Colombia awarded the contract for this $4 billion project to the Chinese consortium in October 2019.

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