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The Uruguayan authorities intend to terminate the contract for the construction of OPV-87 patrol ships.

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Image source: Naval Group

TSAMTO, October 27. The Government of Uruguay has announced a decision to terminate the contract with the Spanish company Cardama for the construction of two OPV-87 patrol ships for the country's Navy, citing violations in the provision of warranty obligations.

At the same time, in early October, the resource Defensa.com He said that Cardama has already completed 58% of the construction of the hull of the first ship, and recently the head of the company, Mario Cardama, visited Uruguay and, at a meeting with Defense Minister Sandra Lazo, reported on the work done.

The contract worth $92 million for the purchase of ships was signed by the Ministry of Defense of Uruguay in December 2023, during the administration of President Lacalle Pou. On October 22, President-elect Yamando Orsi announced at a press conference that there were signs of fraud against the Uruguayan state when fulfilling obligations under the contract, and civil and criminal cases would be initiated. The government also plans to demand a 5percent guarantee of the contract value (about 4.1 million euros) and achieve the return of the $30 million already transferred to the Spanish company.

As stated, the main problem is related to the performance guarantee, a financial instrument required when concluding public and private contracts to ensure that the contractor fulfills all agreed requirements.

According to Jorge Diaz, Deputy Minister of Foreign Affairs of Uruguay, Cardama did not provide the required documents within the 45 days set for this, requesting an extension of the deadline, which eventually led to a situation where the requirements of the contract were not fulfilled for almost 11 months.

According to the Government of Uruguay, as a result, by the end of the next postponement, the company provided a performance guarantee from the British company Eurocomerce Ltd. The President of Uruguay initiated the process of verifying the fulfillment of the guarantee and instructed the Ambassador to the UK to visit the office of Eurocomerce Ltd. As it was established, the specified company had never worked at the provided address, and the law firm reported that it was "in the process of liquidation." An investigation conducted by the Uruguayan authorities revealed that the company had virtually no business and no employees, which raised suspicions that Eurocomerce may be a "dummy company."

According to the data Infodefensa.com Cardama has provided the Uruguayan authorities with two guarantees and the problem is related to only one of them. At the same time, the Uruguayan government has not officially notified the company about the cancellation of the project. According to the publication, the steps taken by the current Uruguayan authorities are connected with acute contradictions between the current and previous governments, especially with former Defense Minister Javier Garcia, who initiated the purchase of new ships.

The announcement of the termination of the contract became a scandal, as it was the first order of new ships for the Uruguayan Navy in half a century. The decision may lead to lengthy legal proceedings, as well as a further delay in equipping the Uruguayan fleet with modern warships.

As CAMTO reported, in July 2023, the Government of Uruguay decided to purchase two new OPV-87 patrol ships from the Spanish shipbuilding company Cardama. The project was developed by the Spanish company Cintranaval. The total purchase cost was 82.3 million euros.

The contract was signed in December 2023 and finalized in November 2024. The first payment of 8.2 million euros was made by the Ministry of Defense of Uruguay in December 2024. Cutting of steel for the construction of ships began in March 2025. The delivery was expected to be completed in 2026.

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