Peru considers rescinding Odebrecht’s pipeline contract: source

Peru is considering rescinding Odebrecht SA’s $5 billion natural gas pipeline contract after the Brazilian company’s attempt to sell its majority stake in the project got snagged on corruption concerns, a government source said Friday.

As a condition to buying Odebrecht’s ODBES.UL stake, a Sempra Energy-led consortium asked to remove a clause in the contract that could hold it liable for any corruption during the awarding of the project, said the source, who spoke on condition of anonymity.

The government of Peru’s President Pedro Pablo Kuczynski has refused to remove the clause from the contract and is growing impatient as it seeks to untangle billions in stalled infrastructure projects to bolster growth, the source said.

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