The Spanish shipyard Cardama, selected to build two ocean patrol vessels (OPV) for the Uruguayan Navy, is facing difficulties in obtaining the necessary financing to begin construction. After the rejection of Abitab to a loan requested by Cardama, The Ministry of Defense has given the company 72 hours to get the money.
The purchase of the vessels, which exceeds US$ 90 million, is subject to the delivery of guarantees by Cardama. The company has already obtained a refund guarantee but has not yet obtained the second, so the construction of the OPVs has not yet begun. The contract signed in December 2023 establishes that if the guarantees are not fulfilled within sixty days, it will be considered null and void unless both parties agree otherwise.
The contract with Astilleros Cardama at risk
The OPV purchase process has been surrounded by controversy since its inception. After an international call for tenders was unsuccessful, the Uruguayan government opted to buy used vessels, but ultimately decided against it due to a technical report from the Navy.
The process culminated with the selection of Cardama, a decision that generated controversy among experts and was criticized by retired Rear Admiral Gustavo Musso, who retired in disagreement with the management of the process.
Cardama’s proposal to deliver US$4 million in cash to guarantee compliance has raised even more doubtsespecially considering reports that the shipyard is on the verge of bankruptcy. The delivery of this amount in cash would be unusual and could raise suspicions about the origin of the funds. In addition, the lack of guarantees from Spanish financial institutions and the absence of a performance insurance policy, which should cover 100% of the value of the vesselraise questions about Cardama’s ability to fulfill the contract.
Cardama is no stranger to financial difficulties. In recent years, the shipyard has faced several failed projects and has been immersed in restructuring processes. Lack of liquidity and inability to obtain financing are recurring problems that have affected its ability to execute contracts.
If Cardama does not obtain the necessary financing in the coming days, the contract could be considered null and void, leaving the Navy without the ships and the Spanish shipyard without the contract, with the risk of a new financial setback.
