Uruguay Sues Cardama for 32 Million Over Failed Patrol Boat Contract

The Government of Uruguay has filed a civil lawsuit against the Vigo shipyard Cardama, claiming 32 million euros for damages resulting from the cancellation of the contract to build two patrol boats, reports Faro de Vigo.

The agreement, signed in December 2023 for around 82 million euros, was canceled in October 2025 by the current Uruguayan government, led by Yamandú Orsi.

The country demands from the shipyard the 28.79 million euros already paid, in addition to other compensations for delays, the inability to use the vessels, and costs incurred in searching for other models. The lawsuit also questions the financial guarantees presented during the contracting process.

The Uruguayan government considers one of the guarantees, issued by Eurcommerce, to be invalid and claims that there are irregularities related to its renewal and the documentation used to validate it.

It also questions a second guarantee, issued by the Barbados-based company Redbridge, due to a supposed conflict of interest related to the person representing the insurer in Uruguay.

The Executive asserts that Cardama breached several of its contractual obligations and alleges that they acted in "bad faith." According to their argument, maintaining the contract would have caused even more economic harm to the Uruguayan state.

For its part, the director of the shipyard, Mario Cardama has initiated proceedings before the International Chamber of Commerce in Paris to request arbitration to determine the responsibilities of both parties. Additionally, he intends to claim financial compensation and does not rule out filing a counterclaim in Uruguay for breach of contract.

Photo: Astilleros Cardama