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Novonor unit settles $30.76 million for contract incompliance with Panama City airport
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Novonor unit settles $30.76 million for contract incompliance with Panama City airport
Aug 23, 2024 7:54 PM

PANAMA CITY, Aug 23 (Reuters) - Panama's Tocumen

International Airport said on Friday that a construction firm

controlled by Brazil's Novonor had been ordered to pay some

$30.76 million to the airport for failure to comply with a

contract to expand one of its terminals.

The firm now known as CNO, S.A. was granted a contract to

expand Tocumen's Terminal 2 in 2012, the airport said in a

statement. The work suffered repeated delays due to "consistent

breaches of contract" by the construction firm, Tocumen said.

Tocumen, which is owned by the state, was "forced to

assume extraordinary expenses" as a result, it said.

Construction had originally been estimated at $679

million, but ended up costing more than $900 million, the

airport said.

An estimated $15 million in repairs are also now needed,

according to Tocumen.

CNO previously operated as Construtora Norberto

Odebrecht, S.A. Its parent Novonor was known as Odebrecht before

a corruption scandal involving bribes to officials across Latin

America was uncovered.

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