Rio de Janeiro, May 31 (IANS): Amid mounting concerns about delays, the Rio de Janeiro administration has cancelled a contract to build the Olympic velodrome and allotted it to a new company, a media report said.

Construction company Tecnosolo, which won the $38 million contract in 2013, was stripped of the project earlier this month, the Folha de S.Paulo newspaper reported on Monday, citing Rio's city administration, Xinhua reported.

Tecnosolo was also said to have been fined $119,000 dollars for repeated failures to meet deadlines. The velodrome - which will stage track cycling at this year's Games - had been scheduled to open last year.

Rio's city government has awarded a new $15 million contract to Engetecnica to complete the works, according to the report.

Engetecnica is in a race against time to complete the venue ahead of the Olympic opening ceremony on August 5.

The company was subcontracted to help build the venue in March when Tecnosolo admitted cash flow problems would not allow it to complete the project alone.

It is the fifth time this year that Rio's government has rescinded a construction contract for Olympic projects.

In January, Rio cancelled contracts for the tennis and equestrian venues due to delayed works.

The Olympic Games will be held from August 5-21 and the Paralympics from September 7-18.