THE Spanish company holding Sydney to ransom with the delayed light rail project has a reputation for fighting with governments and holding stoppages to get what it wants.
The Daily Telegraph can reveal Acciona’s bitter legal stoush with Transport NSW over the behind-schedule light rail is far from the first contractual spat the construction firm has had with international governments.
It comes as the company’s president, Jose Manuel Entrecanales, has just been given a 300 per cent pay rise to boost his annual salary to an incredible $16.5 million.
Acciona is suing the Berejiklian Government for an extra $1.2 billion for work on the light rail claiming it was misled about the complexities of replacing power lines before signing the contract.
LIGHT RAIL DELAYS: What you need to know
In response, the government has accused Acciona of deliberately embarking on a “go-slow” on the project as a pressure tactic.
While ALTRAC, the light rail consortium Acciona are a member of, has denied the “go slow” Acciona has engaged in stop works before and several major projects have been plagued by delays.
A massive hydro-electric dam Acciona is involved in building in Canada is a year behind schedule and $1.7 billion over budget and came close to being cancelled by the province of British Columbia.
In 2017, the company filed a $39.7 million claim against the Balearic Government and the City of Palma in Spain after a pay fight over an exhibition centre it was building for them.
It temporarily stopped work on the project in 2015.
Also in 2017, Acciona and a group of partners faced fines of more than $6.7 million for delays in construction of a $200 million bridge in Canada. The bridge opened two years behind schedule.
Other major projects hit by delays include a 12.4km metro rail system in the Brazilian city of Fortaleza, Acciona signed to build in 2013 but which is not expected to meet its 2019 opening after its partner withdrew.
A massive hydro-electric dam Acciona is involved in building in Canada is a year behind schedule and $1.7 billion over budget and came close to being cancelled by the province of British Columbia.
Acciona pulled out of a now-abandoned canal project in Mexico, after seeking a contract extension and extra funding “due to delays in the authorisation of land use,” according to documents obtained by the Mexicoleaks website.
Acciona was recently forced to stop work on a major road project in Queensland because of safety concerns after as many as 17 heavy vehicle rollovers.
The company has also been hit by bribery scandals.
It was a partner of Brazilian construction company Odebrecht, which has admitted to paying $1 billion in bribes over a 15-year period to secure public contracts in 14 countries.
Acciona had teamed up with Odebrecht on a $2.05 billion underground train line in Ecuador but is now in sole charge of the contract.
In 2016, Spanish media reported an Acciona executive was arrested as part of an investigation into “irregular concessions at state-run water contracts”.
A company spokesman said no charges had been laid and no employee had been sentenced in relation to judicial probes.
“Acciona is not aware of, nor does it suspect, that any kind of irregularity has occurred in its contractual arrangements.
“The company operates under a strict Code of Conduct that guides the relationships not only between employees, but also their dealings with customers, shareholders, suppliers, outside collaborators, public and private institutions, and society as a whole,” he said.
In regards to questions about previous work stoppages the spokesman said: “Acciona scrupulously complies with contracts signed between parties. It is not company policy to comment on commercial issues.”
Acciona is no longer working with Odebrecht on the Ecuador rail project.
The light rail is still listed as a “flagship project” on Acciona’s website where it claims the 12km line will “be a vital element of Sydney’s public transport system, helping to ease traffic congestion”.
But local businesses say construction has dragged on for so long it has pushed them to bankruptcy.
The next step in the saga comes when Acciona appears in the NSW Supreme Court on May 25.
A spokesman said it could not comment on the light rail “due to its contractual obligations”.
A renowned ecowarrior, Mr Entrecanales has come under fire for over-investing Acciona in “green vanity” projects.
But Acciona’s international construction projects make up the bulk of its revenue.
Since posting a loss in 2013 it has won a number of construction jobs, including the 2014 $1.2 billion light rail deal, and in 2017 had a net profit of $370 million.
WEALTH A FAMILY AFFAIR
THE boss of the Spanish company building our maligned light rail project has just scored a massive 300 per cent pay rise to take his annual salary to $16.5 million.
And the company is about to fatten the pay cheques of its other senior executives even further.
But this is no ordinary company, and the powerful family behind it is treated like royalty across Europe.
Acciona president Jose Manuel Entrecanales is the patriarch of a dynasty that sails classic yachts, plays polo, buys entire apartment buildings and send its kids to Eton, the school that educated Prince William and Prince Harry.
Mr Entrecanales’ mother was aristocrat Blanca Domecq and her father was the viscount of Almocadén — a title created by the King of Spain with whom Mr Entrecanales is well acquainted.
The family has a home in ritzy El Viso, described as Spain’s wealthiest suburb, purchased in 2007 with a $12.71 million mortgage. The three-storey home on an 1000sq m block is shielded from view by a two-metre wall and hedges.
The clan, which includes Mr Entrecanales’ five siblings and two half-brothers, own more than half the shares in Acciona.
Mr Entrecanales, 55, has been named the nation’s third highest paid company director by the National Security Market Commission.
His package includes $7.23 million in company shares and in total is 317 per cent higher than the $3.96 million he took home in 2016.
At Acciona’s shareholders meeting the company plans to increase the maximum number of shares doled out to their senior executives by 100,000.
They also want to increase the dividends paid on each individual share to $4.78.
The change will mean a windfall for the Entrecanales.
An Acciona spokesman said: “Acciona’s top management remuneration policy is approved by its Board of Directors.”
ACCIONA’S TOP 10 GLOBAL PROJECTS
Mexico City’s international airport terminal — $6.19b
In 2017 Acciona was part of the consortium that won the contract to build Mexico City’s new airport terminal. The four-level building is 743,000sq m.
Dubai Metro extension — $4.13b
Dubai’s Roads and Transport Authority awarded a contract to a consortium of Acciona, the French company Alstom and the Turkish company Gülermak, to extend their rail line by 15km. It is on track for completion in 2019.
Quito Metro, Ecuador — $2.05b
Acciona and its construction partners were awarded a contract to build the underground rail system which includes a 22.6km tunnel and 15 stations. According to Acciona, the consortium has completed three of the 15 stations.
Hydro-electric plant, Canada — $2.33b
In 2013 Acciona signed a contract to build a 1,100MW hydro-electric dam in British Columbia. Acciona signed the contract with BC Hydro, a Canadian electric utility. It is one of Canada’s biggest infrastructure projects.
Toowoomba Range Crossing, Queensland — $1.6b
Acciona and its partners signed the contract to build the Toowomba range crossing in Queensland in 2015. The project is due to be complete this year, however work has had to stop on multiple occasions due to safety fears.
Railway tunnel, Norway — $1.59b
In 2015, Acciona and its consortium partners signed a contract with the Norwegian National Rail Administration to build the longest railway tunnel in Scandinavia. The tunnel is Norway’s largest infrastructure project. In May 2018, Acciona reported the tunnel was 66 per cent complete.
Fortaleza Metro, Brazil — $1.3b
Acciona is the lead partner in the consortium awarded the contract to construct a new 12.4km underground rail line in Fortaleza, Brazil. The contract was awarded in 2013
Kathu Solar Park Complex, South Africa — $790m
In 2015 Acciona and its consortium partners were awarded a contract worth more than $79m to build a 100MW solar thermal power plant in the province of Northern Cape, South Africa. It is due to start operating in the second half of 2018.
Pacific Highway Upgrade, NSW — $550m
Acciona is one of the companies given a contract by the NSW government in 2014 to design and construct the Pacific Highway Upgrade between Warrell Creek and Nambucca Heads. The project is due to complete this year.
Cebu-Cordova bridge, Philippines — $531m
In 2017, Acciona was part of the consortium awarded the contract for the new Cebu-Cordova bridge in the Philippines. The bridge is being commissioned by the Cebu Cordova Link Expressway Corporation.