Uruguay cancels Cardama OPV deal over “serious breaches,” moves toward legal action
In October 2025, Orsi had already announced an intention to terminate the agreement, citing “strong indications of fraud or swindle against the Uruguayan State.”
Uruguay’s government has terminated its contract with Spain’s Cardama shipyard for the construction of two offshore patrol vessels (OPVs) for the Uruguayan Navy, citing “serious contractual breaches,” and said it will seek damages through legal action.
President Yamandú Orsi made the announcement after a cabinet meeting in Montevideo. “This is an action aimed at the permanent need for transparency in public management,” he said as he opened his press conference.
Orsi argued the case crystallised as his administration reviewed the contract’s guarantees. “We were surprised to find that the guarantee did not exist or, worse still, that what we had was a false document,” he said, referring to the performance bond. The government said the company later acknowledged the guarantee was non-existent.
The executive branch also reported irregularities in the reimbursement guarantee. “We found it does not comply with what is established in the contract,” Orsi said, adding that the document presented was not an insurance policy but rather a set of terms and conditions.
Orsi outlined four steps: cancel the supply contract and pursue damages; move to “recover the State’s assets”; define institutional and individual responsibilities; and seek alternative ways to acquire the ocean patrol vessels.
Background and disputed guarantees
The deal was signed in December 2023 under the previous administration and envisaged the purchase of two OPVs for US$ 92 million, according to information released at the time.
In October 2025, Orsi had already announced an intention to terminate the agreement, citing “strong indications of fraud or swindle against the Uruguayan State.” On that occasion, Presidency pro-secretary Jorge Díaz said there were indications the entity backing the bond was a “shell company.” Presidency secretary Alejandro Sánchez said the State had transferred close to US$ 30 million under the contract.
Navy alternatives
Orsi said Uruguay is exploring options with countries that have public and private shipyards to procure vessels of similar size, and is considering fast boats for coastal surveillance. He also mentioned an offer from the United States to provide a ship as an interim solution.
Cardama sources, quoted in regional coverage, criticised the handling of the process and said the company will review its legal options.
