Novonor unit settles $30.76 million for contract incompliance with Panama City airport
Updates with additional detail from statement
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 airportfor failure to comply with a contract to expand one of itsterminals.
The firmnow 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 previouslyoperated as Construtora Norberto Odebrecht, S.A. Its parent Novonorwas known as Odebrecht before a corruption scandal involving bribes to officials across Latin America was uncovered.
Reporting by Elida Moreno; Editing by Diane Craft
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