Rio cancels contract to build Olympic equestrian venue

Rio de Janeiro's city government on Thursday cancelled its second Olympic construction contract in a week, terminating an agreement to build the Games' equestrian venue.

Builder Ibeg Engenharia e Construcoes was also fined about 2.5 million US dollars for contract breaches, according to Rio's official gazette.

The Rio 2016 equestrian center, part of the Deodoro Park complex, has been estimated to require investment of around 38 million US dollars.

Unlike other Olympic venues under construction, the government has not revealed the state of progress at the center, which will host cross-country, dressage and show jumping events.

In a statement, Ibeg said delays were due to the government's alleged failure to pay for the work. It added that the cancellation disobeyed a judge's earlier ruling that no penalties be applied by the government until a final court decision.

"Ibeg repudiates the decision to cancel the contract and will seek compensation through the courts for financial losses caused as well as the damage to our public image," Ibeg said.

Ibeg was also part of the consortium that last week had its contract to build the Olympic tennis center revoked for alleged delays and irregularities.

The Olympic Games will be held from August 5 to 21. Endit