LIMA Nov 26 Brazilian engineering group
Odebrecht SA said it has agreed to sell its Olmos
irrigation business in Peru to Brookfield Infrastructure
Partners LP and Suez SA for an undisclosed
The announcement follows Odebrecht's failed attempt to sell
its majority stake in a $5 billion natural gas pipeline project
in Peru to Sempra Energy, which backed out of a deal on
worries it could be held liable for any corruption.
Odebrecht is at the center of Brazil's biggest graft scandal
and is trying to sell off its assets to pay down its bloated
Olmos was one of Odebrecht's landmark projects in Peru,
where the family-owned company has had an outsized presence in
construction ventures. It required building a 20-kilometer
(12-mile) tunnel through the Andes to transport water for
irrigation of some 43,500 hectares (107,500 acres) of
agricultural fields in the desert.
Olmos is selling its right to maintain the tunnel and
operate the irrigation business, the company said in a statement
late on Friday.
Odebrecht did not say how much it was selling Olmos for or
what stake Brookfield and Suez would have in it. In 2013
Odebrecht said the project would cost at least $500 million.
The acquisition must be approved by creditors and the
regional government of Lambayeque in northern Peru, Odebrecht
(Reporting By Mitra Taj; Editing by Hugh Lawson)