Friends in High Places.

Political finesse helps Brazilian construction giant Odebrecht grab a big piece of Florida's public works projects.

WHEN LUIZ AUGUSTO ROCHA WAS NAMED HEAD OF THE Florida office of Odebrecht, the Brazilian engineering and construction giant, he didn't waste any time. Upon arriving in Miami, one of the first things he did was make the rounds among local politicians, accompanied by his predecessor, Luis Oswaldo Leite, who started the company's Florida business in 1991 and was then headed back to Brazil.

One of their first stops was the office of Miami-Dade County commissioner Natacha Millan. "They didn't have an appointment; they just dropped by," she says. "We met for five or 10 minutes, just to meet the new guy. It was a courtesy call."

That kind of political finesse, along with bidding expertise and an international reputation for quality, has helped Odebrecht become a dominant player in South Florida public works construction.

During the early 1990s, Odebrecht was one of more than a dozen foreign construction firms competing for public contracts to modernize roads and highways, primarily in South Florida. Most of them have since left. But Odebrecht has stayed, setting itself apart from competitors, both foreign and domestic.

So far, Odebrecht has landed more than US$400 million in South Florida public works projects. About two-thirds of that amount stems from the company's prominent role in Miami International Airport's $4 billion longterm expansion and remodeling effort. Odebrecht has also clinched several large highway projects and is partnering with New York-based Morse Diesel Co. to build the $157 million American Airlines Arena.

That's not all. Odebrecht has also completed several bridge and highway projects in other parts of Florida, as well as in Alabama, South Carolina and North Carolina. A few years ago, the company expanded into commercial construction and has completed 17 projects throughout the Southeast to date.

Still, Florida remains Odebrecht's primary market. It accounts for about $150 million in annual revenues, compared with approximately $45 million from California, according to Leite and Rocha. That's why Odebrecht consolidated its U.S. operations in Miami, shutting down its California office and relocating Rocha and six other employees to Florida. "The significance of merging the offices is to focus on Florida, because that's where the money is in the U.S.," Rocha says.

Odebrecht is a $5 billion-a-year conglomerate with more than 18,000 employees in 15 countries. However, the company has prospered in Florida by making Odebrecht Contractors of Florida Inc. a local operation. "Odebrecht had the know-how and resources to get their name known and open doors in Miami," says William Delgado, president of the locally powerful Latin Builders Association. "Plus, their work was good to very good."

Odebrecht's Florida executives say their success stems from a company philosophy of local involvement and decentralized authority. "Our branches have

full power to develop our local company with local resources and local people:" Rocha says. "We are an American company in the U.S., a Peruvian company in Peru, an Ecuadorian company in Ecuador, and so on:" The Mas Canosa connection. Company executives set their sights on becoming a part of the South Florida landscape immediately after setting up shop in Miami in 1991. They purposely cut a high profile, Delgado recalls. "They immediately joined our organization. They had a presence at almost every industry-related event I attended in the early nineties--dinners, workshops--whatever," he says.

Odebrecht built a strong foundation for future success by teaming up with Church & Tower, a Miami construction firm with strong political ties. The company was run by Jorge Mas Canosa, the late Cuban exile leader. "At the time,

Church & Tower was a small company looking to develop itself in heavy construction," Leite says. "They knew the local market and we had managerial capabilities. We were introduced to Mas Canosa by a common acquaintance, and we developed a good relationship."

Just months after they met, Leite says, Odebrecht teamed with Church & Tower to bid on an extension for Miami's elevated transit system. the Metromover. They submitted the lowest bid and won the contract. Odebrecht owned 80% of the joint venture, valued at $27.8 million. A year later, the two companies won a $22.4 million contract to expand the South Dade Landfill.

After landing the second project, the two companies stopped partnering together. Church & Tower--which has subsequently become embroiled in a major road-paving scandal for allegedly over-billing local government--is a subsidiary of Miami-based MasTec, which specializes in building and installing cable TV and telephone systems in Latin America and the United States. "We came to the conclusion that we were in different businesses," Leite says. "They were more into telecommunications, and we were into heavy construction:"

Nevertheless, the relationship left Odebrecht with lasting political connections. "Mas Canosa introduced me to many people in the community, and a lot of them are still my friends," Leite says. MasTec spokesman Fernando Rojas declined to comment, calling the relationship between the two companies "history:"

Odebrecht also builds goodwill through contributions of money and staff time to high-profile charities and other organizations. For example, Leite joined the board of directors of the New World Symphony and the Brazilian-American Chamber of Commerce.

Then came the whopper. In 1995, Odebrecht contributed $75,000 to the Foundation for Florida's Future (FFF). a non-profit think-tank. It was the FFF's largest donation. The organization was established by Jeb Bush, a South Florida developer and son of former President George Bush, after Jeb lost a 1994 run for governor. He ran again in 1998 and won. Democrats claimed that the FFF was a clever way for Bush to run a shadow--but legal--campaign by keeping his name in the public eye between elections.

Controversial donations, The donation became public during Bush's 1998 campaign. Odebrecht said at the time that it gave the money to help support the foundation's publication of Bush's book Profiles in Character. Says Leite: "We were looking for a worthwhile project to support. Bush was not in a campaign when we made the contribution. We thought It was a good investment:"

Just to show that it was non-partisan, in September 1998 Odebrecht also contributed $5,000 to the state Democratic Party, which was paying many of the expenses for Bush's opponent. Buddy MacKay.

Odebrecht is no stranger to political controversy. In the early 1990s, the Brazilian government investigated allegations that Odebrecht and other construction companies had bribed officials in return for public contracts. Odebrecht denied any foul play, and the company was never indicted.

In Miami, politicians describe Odebrecht's lobbying efforts as relatively understated. The company has one full-time lobbyist. Some construction firms have two or three, notes Millan, a key player in the Miami-Dade commission's decisions on matters involving Miami International Airport.

"Odebrecht is low key compared to what I see from some other companies," Millan says. "They brief me on their proposals well in advance and provide more information if I request it. They never pressure me just before I sit on the dais to make a decision:" Odebrecht may be low key, but somehow, it certainly has been effective at grabbing public-works projects in Florida.