MercoPress. South Atlantic News Agency

Uruguay to seek damages after Spanish shipyard Cardama fails to appeal OPV contract termination

The contract, signed under the administration of former president Luis Lacalle Pou, provided for the construction of two OPV vessels for Uruguay’s Navy

Spanish shipyard Cardama did not file an appeal against the Uruguayan government’s decision to terminate the contract for the purchase of two offshore patrol vessels for the Navy, meaning the measure is now final and the Ministry of Defence will move ahead with a claim for damages. The confirmation came on Thursday from Presidential Secretary Jorge Díaz.

“The administrative act terminating the contract was not appealed by the shipyard, the termination is final. There is no appeal to process and there will be no case before the Administrative Litigation Court. What remains are the consequences of the termination: damages,” Díaz said. He added that the development gave the government “great peace of mind” regarding the legality of the course it had taken.

The contract, signed under the administration of former president Luis Lacalle Pou, provided for the construction of two OPV vessels for Uruguay’s Navy. The deal was valued at about US$90 million, and the state had already made payments of roughly US$30 million before the new government decided to end it.

President Yamandú Orsi’s government had announced in October 2025 that it would terminate the contract after detecting breaches linked to the performance guarantee submitted by the company. According to the presidency, when the state tried to enforce that guarantee it found serious irregularities, including the alleged invalidity of the document issued by Eurocommerce Limited. The case also triggered administrative and criminal proceedings.

In February 2026, Orsi said the termination would stand and that the executive would seek compensation, recover public funds already committed and determine responsibilities. With Cardama declining to challenge the decision, the government now considers the administrative phase closed and the dispute shifted to its financial and legal consequences.

The case has become one of the most sensitive defence files since the change of government, not only because of the money involved but also because of Uruguay’s need to renew its offshore patrol capabilities. While the political debate over the original procurement process continues, the executive has already said it is studying alternatives in other countries to obtain the vessels through a different route.