UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                                Washington, D.C. 20549

                                 SCHEDULE 14A
                    Information Required in Proxy Statement

                           SCHEDULE 14A INFORMATION

Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934

Filed by the Registrant [X]

Filed by a Party other than the Registrant [_]

Check the appropriate box:

[_]  Preliminary Proxy Statement

[_]  Confidential, for Use of the Commission Only (as permitted by Rule
     14a-6(e)(2))

[X]  Definitive Proxy Statement

[_]  Definitive Additional Materials

[_]  Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12

                        ANDEAN DEVELOPMENT CORPORATION
- --------------------------------------------------------------------------------
               (Name of Registrant as Specified In Its Charter)


- --------------------------------------------------------------------------------
   (Name of Person(s) Filing Proxy Statement, if other than the Registrant)


Payment of Filing Fee (Check the appropriate box):

[X]  No fee required.

[_]  Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.


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         pursuant to Exchange Act Rule 0-11 (Set forth the amount on which
         the filing fee is calculated and state how it was determined):

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     (5) Total fee paid:

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[_]  Fee paid previously with preliminary materials.

[_]  Check box if any part of the fee is offset as provided by Exchange
     Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee
     was paid previously. Identify the previous filing by registration statement
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                        ANDEAN DEVELOPMENT CORPORATION

                              1 Brickell Square,
                        801 Brickell Avenue, Suite 900
                             Miami, Florida 33131
                                (305) 371-0056


                   NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
                          TO BE HELD ON JUNE 29, 2001


     The 2000 Annual Meeting of Shareholders (the "Annual Meeting") of Andean
Development Corporation, a Florida corporation (the "Company"), will be held at
3:00 p.m., local time, on Friday, June 29, 2001 at the offices of Broad and
Cassel, 201 South Biscayne Boulevard, Suite 3000, Miami, Florida 33131, for the
following purposes:

     (1)  To elect five members to the Company's Board of Directors to hold
          office until the Company's 2001 Annual Meeting of Shareholders or
          until their successors are duly elected and qualified;

     (2)  To ratify the appointment of Spear, Safer, Harmon & Co., as the
          Company's independent certified public accountants for the fiscal year
          ending December 31, 2001; and

     (3)  To transact such other business as may properly come before the Annual
          Meeting and any adjournment thereof.

     The Board of Directors has fixed the close of business on June 18, 2001, as
the record date for determining those shareholders entitled to notice of, and to
vote at, the Annual Meeting and any adjournment thereof.

                                             By Order of the Board of Directors

Miami, Florida                               /s/ Pedro P. Errazuriz
June 19, 2001                                ----------------------
                                             PEDRO P. ERRAZURIZ
                                             CHAIRMAN OF THE BOARD

THE BOARD OF DIRECTORS REQUESTS THAT YOU COMPLETE, SIGN, DATE AND RETURN THE
ENCLOSED PROXY CARD PROMPTLY. YOU ARE CORDIALLY INVITED TO ATTEND THE ANNUAL
MEETING IN PERSON. THE RETURN OF THE ENCLOSED PROXY CARD WILL NOT AFFECT YOUR
RIGHT TO REVOKE YOUR PROXY OR TO VOTE IN PERSON IF YOU DO ATTEND THE ANNUAL
MEETING.

                                       2


                        ANDEAN DEVELOPMENT CORPORATION

                               1 Brickell Square
                        801 Brickell Avenue, Suite 900
                             Miami, Florida 33131
                                (305) 371-0056

                                PROXY STATEMENT

     This Proxy Statement is furnished in connection with the solicitation by
the Board of Directors of Andean Development Corporation, a Florida corporation
(the "Company"), of proxies from the holders of the Company's common stock, par
value $.0001 per share (the "Common Stock"), for use at the 2000 Annual Meeting
of Shareholders of the Company to be held at 3:00 p.m., local time, on Friday,
June 29, 2001 at the offices of Broad and Cassel, 201 South Biscayne Boulevard,
Suite 3000, Miami Florida 33131, and at any adjournment thereof (the "Annual
Meeting"), pursuant to the enclosed Notice of Annual Meeting of Shareholders.

     The approximate date that this Proxy Statement and the enclosed form of
proxy are first being sent to shareholders is June 19, 2001. Shareholders should
review the information provided herein in conjunction with the Company's 2000
Annual Report, which was filed with the Securities and Exchange Commission on
April 14, 2001.  The Company's principal executive offices within the United
States are located at 1 Brickell Square, 801 Brickell Avenue, Suite 900, Miami,
Florida  33131, and its telephone number is (305) 371-0056.

                         INFORMATION CONCERNING PROXY

     The enclosed proxy is solicited on behalf of the Company's Board of
Directors. Shareholders who hold their shares through an intermediary must
provide instructions on voting as requested by their bank or broker. The giving
of a proxy does not preclude the right to vote in person should any shareholder
giving the proxy so desire. Shareholders have an unconditional right to revoke
their proxy at any time prior to the exercise thereof, either in person at the
Annual Meeting or by filing with the Company's Assistant Secretary at the
Company's executive office within the United States a written revocation or duly
executed proxy bearing a later date; however, no such revocation will be
effective until written notice of the revocation is received by the Company at
or prior to the Annual Meeting.

     The cost of preparing, assembling and mailing this Proxy Statement, the
Notice of Annual Meeting of Shareholders and the enclosed proxy will be borne by
the Company. In addition to the use of the mail, employees of the Company may
solicit proxies personally and by telephone. The Company's employees will
receive no compensation for soliciting proxies other than their regular
salaries. The Company may request banks, brokers and other custodians, nominees
and fiduciaries to forward copies of the proxy material to their principals and
to request authority for the execution of proxies. The Company may reimburse
such persons for their expenses in so doing.


                            PURPOSE OF THE MEETING

     At the Annual Meeting, the Company's shareholders will consider and vote
upon the following matters:

     (1)  To elect five members to the Company's Board of Directors to hold
          office until the Company's 2001 Annual Meeting of Shareholders or
          until their successors are duly elected and qualified;

     (2)  To ratify the appointment of Spear, Safer, Harmon & Co. as the
          Company's independent certified public accountants for the year ending
          December 31, 2001; and

     (3)  To transact such other business as may properly come before the Annual
          Meeting and any adjournment thereof.

     Unless contrary instructions are indicated on the enclosed proxy, all
shares represented by valid proxies received pursuant to this solicitation (and
which have not been revoked in accordance with the procedures set forth above)
will be voted (a) FOR the election of each of the five nominees for director
named below, and (b) FOR the proposal to ratify the appointment of Spear, Safer,
Harmon & Co., as the Company's independent certified public accountants. In the
event a shareholder specifies a different choice by means of the enclosed proxy,
such shareholder's shares will be voted in accordance with the specification so
made.

                OUTSTANDING VOTING SECURITIES AND VOTING RIGHTS

     The Board of Directors has set the close of business on June 18, 2001 as
the record date (the "Record Date") for determining shareholders of the Company
entitled to receive notice of and to vote at the Annual Meeting. As of the
Record Date there were 2,820,100 shares of Common Stock, $.0001 par value (the
"Common Stock") issued and outstanding, all of which are entitled to be voted at
the Annual Meeting. Each share of Common Stock is entitled to one vote on each
matter submitted to shareholders for approval at the Annual Meeting.

     The presence, in person or by proxy, of at least a majority of the total
number of shares of Common Stock outstanding on the Record Date will constitute
a quorum for purposes of the Annual Meeting. If less than a majority of the
outstanding shares of Common Stock are represented at the Annual Meeting, a
majority of the shares so represented may adjourn the Annual Meeting from time
to time without further notice. A plurality of the votes cast by holders of the
Common Stock will be required for the election of directors. The appointment of
Spear, Safer, Harmon & Co. as the Company's independent certified public
accountants for the fiscal year ending December 31, 2001, will be approved if
the number of shares of Common Stock voted in favor of ratification exceeds the
number of shares voted against it. Any other matter properly brought before the
Annual Meeting will be approved if the number of shares of Common Stock voted in
favor of the matter exceeds the number of shares voted against, unless such
matter is one for which a greater vote is required by law. Abstentions and
broker non-votes will be counted as shares present at the Annual Meeting for
purposes of determining a quorum. With respect to the outcome of any matter
brought before the Annual Meeting (i) abstentions will be considered as shares
present and entitled to vote at the Annual Meeting, but will not be counted as
votes cast for or against any given matter and (ii) broker non-votes will not be
considered shares present and entitled to vote. Because directors will be
elected by a plurality of the votes cast at the Annual Meeting and the other
matters to be acted upon at the Annual Meeting will be approved if the number of
votes cast in favor of the matter exceeds the number of votes cast against it,
abstentions and broker non-votes will have no effect on the outcome of the
proposals to be voted upon at the Annual Meeting.

                                       2


     Prior to the Annual Meeting, the Company will select one or more inspectors
of election for the Annual Meeting. Such inspector(s) shall determine the number
of shares of Common Stock represented at the Annual Meeting, the existence of a
quorum, and the validity and effect of proxies, and shall receive, count, and
tabulate ballots and votes, and determine the results thereof.

     A list of shareholders entitled to vote at the Annual Meeting will be
available for examination by any shareholder at the Company's principal
executive office in the United States for a period of 10 days prior to the
Annual Meeting, and at the Annual Meeting itself.

                                       3


        SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

     The following table sets forth certain information regarding the beneficial
ownership of the Company's Common Stock as of June 18, 2001 by: (i) each person
known to the Company to own beneficially more than five percent of the Common
Stock; (ii) each director of the Company and nominee for election as a director;
(iii) each executive officer named in the Summary Compensation Table; and (iv)
all executive officers and directors as a group.




                                                                  AMOUNT AND NATURE
                                                                    OF BENEFICIAL              PERCENT
NAME AND ADDRESS OF BENEFICIAL OWNER(1)                             OWNERSHIP(2)             OF CLASS(3)
- -----------------------------------------------------------      -------------------        ------------
                                                                                      
Alberto Coddou(4)..........................................                    0                    0%
Pedro P. Errazuriz(5)(8)...................................            1,511,500                 53.6%
Sergio Jimenez.............................................                    0                    0%
Claude Mermier(6)..........................................                    0                    0%
Jose Luis Yrarrazaval......................................               11,450                    *

All directors and executive officers as a group
  (6 persons)..............................................            1,522,950                 54. %
Igenor, Ingenierie et Gestion, S. A.(7)....................            1,425,000                 50.5%
Berta Dominguez(7)(8)......................................            1,425,000                 50.5%



_______________
*Less than one percent.

(1)  Unless otherwise indicated, the address of each beneficial owner is Avenida
     Americo Vespucio Sur #100, Piso 16, Las Condes Santiago, Chile.

(2)  A person is deemed to be the beneficial owner of securities that can be
     acquired by such person within 60 days from the date hereof. Based on
     2,820,100 shares issued and outstanding as of the date hereof.

(3)  Based on 2,820,100 issued and outstanding as of the date hereof.

(4)  Mr. Coddou's address is Santa Lucia 280-OF.12, Santiago, Chile.

(5)  Includes 1,450,000 shares of Common Stock owned by Igenor, Ingenierie et
     Gestion, S.A., a Swiss corporation ("Igenor") of which Mr. Pedro P.
     Errazuriz owns 50% the outstanding capital stock. Also includes 86,500
     shares of Common Stock owned directly by Mr. Pedro P. Errazuriz.

(6)  Mr. Mermier's address is c/o Etude Montavan-Mermier, 22, rue Etienne
     Dumont, 1211 Geneve 3, Switzerland.

(7)  The principal shareholders of Igenor are Mr. Pedro P. Errazuriz (50%), the
     Chairman of the Company's Board of Directors; Mrs. Berta Dominguez
     (49.50%), the wife of Mr. Pedro P. Errazuriz; Mr. Pedro Pablo Errazuriz
     Dominguez, a son of Mr. Pedro P. Errazuriz and Mrs. Berta Dominguez
     (0.25%); and Pierre Yves Montavon (0.25%), an unrelated third party. The
     address for this company is c/o Etude Montavan-Mermier, 22, rue Etienne
     Dumont, 1211 Geneve 3, Switzerland.

                                       4


(8)  Consists of 1,425,000 shares of Common Stock owned by Igenor, of which Mrs.
     Berta Dominguez owns 49.50% of the outstanding capital stock.  Mrs. Berta
     Dominguez is the wife of Mr. Pedro P. Errazuriz, the Company's Chairman of
     the Board of Directors.

                      PROPOSAL 1 - ELECTION OF DIRECTORS

          At the 2000 Annual Meeting, five directors are to be elected to hold
office until the 2000 Annual Meeting of Shareholders and until their successors
have been elected and qualified. The five nominees for election as directors are
Pedro P. Errazuriz Dominguez, Pedro P. Errazuriz, Jose Luis Yrarrazaval, Alberto
Coddou, and Sergio Jimenez. Each nominee is currently a member of the Board of
Directors. The persons named in the enclosed proxy card have advised that,
unless otherwise directed on the proxy card, they intend to vote FOR the
election of the nominees. Should any nominee become unable or unwilling to
accept nomination or election for any reason, persons named in the enclosed
proxy card may vote for a substitute nominee designated by the Board of
Directors. The Company has no reason to believe the nominees named will be
unable or unwilling to serve if elected.

Nominees
- --------

            NAME                        AGE                 POSITION
Pedro P. Errazuriz                      65        Chairman of the Board, Chief
                                                  Executive Officer
Pedro P. Errazuriz Dominguez            40        Nominee
Jose Luis Yrarrazaval                   62        Vice Chairman of the
                                                  Board/Chief Financial
                                                  Officer/Secretary Director
Alberto Coddou                          63        Director
Sergio Jimenez                          65        Director

PEDRO PABLO ERRAZURIZ served as Chief Executive Officer and Chairman of the
Board of Directors of the Company from October 19, 1994, and its President since
January 11, 1995. He has also served as the President and sole Director of
Andean Export Corporation since February 9, 1995, and as Director of Andean
Engineering & Finance Corp. since its inception in July 1997.  Mr. Errazuriz has
also served as Chairman of the Board of Directors of Kvaerner Chile S.A., a
subsidiary of Kvaerner A.S., a Norwegian-based manufacturer of electrical and
mechanical equipment) since 1992 and as the exclusive agent for Kvaerner Turbin
A.B. (Sweden) since 1994. Since 1986, Mr. Errazuriz has acted as an exclusive
agent in Chile for Norconsult. Mr. Errazuriz received an engineering degree from
the Catholic University of Chile in 1959.

PEDRO PABLO ERRAZURIZ DOMINGUEZ is presently the President of Ladeco (a
subsidiary of Lan Chile) in Chile.  From 1997 to 2000, he served as the General
Manager of Edegel, S.A. (the largest utility in Peru), and a subsidiary of
Endesa, S.A.  From 1994 to 2000, he was with Endesa, S.A., serving as the
Control Manager for Endesa, S.A. in 1994, the Manager of Central Buenos Aires
for a subsidiary of Endesa, S.A. from 1995 to 1997 and the General Manager of
Edegel, S.A. (the largest utility in Peru), and a subsidiary of Endesa, S.A.
from 1997 to 2000.  Mr. Errazuriz Dominguez received his engineering degree in
1984 at Universidad Catolica (UC), postfraduate degrees in Hydraulics and
Systems at UC and a post graduate degree in Economics at the London School of
Economics.

                                       5


JOSE LUIS YRARRAZAVAL has been a member of the Board of Directors of the Company
since March 20, 1995 and has served as Chief Financial Officer from March 20,
1995.  In January, 1998, he was appointed Vice Chairman of the Board of
Directors of the Company. He also has served as Executive Vice President and a
Director of INA and E&A since March 20, 1995. Between November 1993 and October
1997, Mr. Yrarrazaval served as the General Manager of both E&A and INA, which
responsibilities included all financial matters and personnel management.

ALBERTO CODDOU has served as a member of the Board of Directors of the Company
since March 20, 1995, and as a member of the Board of Directors of E&A since
March 20, 1995. Mr. Coddou has been a partner with the law firm of Figueroa &
Coddou in Santiago, Chile since 1965. He has also been an Assistant Professor of
Law at the University of Chile, School of Law from 1959 through 1982. In May
1995, Mr. Coddou was appointed Chairman of the Board of Directors and Legal
Representative of Consorio Periodistico de Chile S.A., the owners and editors of
a Chilean newspaper called La Epoca.

SERGIO JIMENEZ has served on the Board of Directors of the Company since March
20, 1995. Through June 1997 he was the President of the Santiago Water and
Sewage Company "EMOS". In June 1995, Mr. Jimenez was appointed as a member of
the Board of Directors of ENAP (Empresa Nacional del Petroleo), the Chilean oil
company owned by the government. Mr. Jimenez is also a partner and Managing
Director of Consultora Jimenez y Zanartu Limitada, which consults on engineering
projects for segments of the Chilean government related to public works. Mr.
Jimenez is a civil engineer, having received his degree from the University of
Chile, in Santiago and has a post graduate degree in Project Evaluation from the
University of Chile.

BOARD OF DIRECTORS

     Directors are elected at the Company's annual meeting of shareholders and
serve for one year until the next annual shareholders' meeting or until their
successors are elected and qualified. Officers are elected by the Board of
Directors and their terms of office are, except to the extent governed by
employment contract, at the discretion of the Board. All of the Company's
executive officers are full-time employees of the Company. The Company pays its
Directors a fee of $1,000 per meeting attended, and reimburses all Directors for
their expenses in connection with their activities as directors of the Company.
Directors of the Company who are also employees of the Company will not receive
additional compensation for their services as directors.

COMMITTEES OF THE BOARD OF DIRECTORS

     The Company has five committees: the Audit Committee, Compensation and
Investment Committee, Nominating Committee, Employee Stock Option Committee, and
the Directors Stock Option Committee. As of December 31, 1999, the members of
these committees consisted of Jose Luis Yrarrazaval, Alberto Coddou and Sergio
Jimenez. Messrs. Coddou and Jimenez are considered by the Company to be
independent directors.

     The principal functions of the Audit Committees are to recommend the annual
appointment of the Company's auditors concerning the scope of the audit and the
results of their examination, to review and approve any material accounting
policy changes affecting the Company's operating results and to review the
Company's internal control procedures. The Investment and Compensation Committee
reviews and recommends investments, compensation and benefits for the executives
of the Company. The Nominating Committee seeks out qualified persons to act as
members the Company's Board of Directors. The Employee Stock Option Committee
and the Directors Stock Option Committee administer and interpret the Company
Stock Option Plan and the Directors Stock Option Plan and is authorized to grant
options pursuant to the terms of these plans.

                                       6


     During the year ended December 31, 2000, the Company's Board of Directors
held six  meetings. All of the directors attended this meeting. During the year
ended December 31, 2000 the Investment and the Compensation Committee met three
times. The functions of the other committees were performed by the entire Board
of Directors during 2000.

COMPLIANCE WITH SECTION 16(a) OF THE SECURITIES EXCHANGE ACT OF 1934

     Section 16(a) of the Securities Exchange Act of 1934, as amended, requires
that the Company directors and executive officers, and persons who own more than
ten percent (10%) of the Company's outstanding Common Stock, file with the
Securities and Exchange Commission (the "Commission") initial reports of
ownership and reports of changes in ownership of Common Stock. Such persons are
required by the Commission to furnish the Company with copies of all such
reports they file. The Company's knowledge, based solely on a review of the
copies of such reports furnished to the Company and written representation, as
of December 31, 2000, all of the Section 16(a) filing requirements applicable to
its officers, directors and greater than 10% beneficial owners have been
satisfied.

                            EXECUTIVE COMPENSATION

     The following table sets forth information with respect to compensation
paid by the Company to the Chief Executive Officer:

                          SUMMARY COMPENSATION TABLE



                                                                                                       OTHER ANNUAL
NAME AND PRINCIPAL POSITION                          YEAR            SALARY            BONUS           COMPENSATION
- ---------------------------------------------   -------------   ---------------   ---------------------------------------
                                                                                           
Pedro P. Errazuriz                                   2000             $0.00             $0.00             $  20,000.00*
  President Chief Executive Officer                  1999             $0.00             $0.00             $  20,000.00*
  Chairman                                           1998             $0.00             $0.00             $  20,000.00*


            .  This is allocated to an annual automobile allowance

THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" EACH OF THE NOMINEES AS DIRECTORS
TO SERVE UNTIL THE COMPANY'S 2000 ANNUAL MEETING OF SHAREHOLDERS AND UNTIL THEIR
SUCCESSORS HAVE BEEN ELECTED AND QUALIFIED.

                                       7


             PROPOSAL 2 - RATIFICATION OF APPOINTMENT OF AUDITORS

     The Board of Directors has appointed Spear, Safer, Harmon & Co., as the
Company's independent certified public accountants for the fiscal year ending
December 31, 2001. Spear, Safer, Harmon & Co., was the independent public
auditor of the Company for the fiscal year ended December 31, 2000.  A
representative of Spear, Safer, Harmon & Co., is expected to be present at the
Annual Meeting, will have an opportunity to make a statement if such
representative desires to do so and is expected to be available to respond to
appropriate questions.  The affirmative vote of a majority of the votes cast is
necessary to appoint Spear, Safer, Harmon & Co.

     THE BOARD OF DIRECTORS RECOMMENDS THAT THE SHAREHOLDERS VOTE "FOR" THE
RATIFICATION OF SPEAR, SAFER, HARMON & CO., AS THE COMPANY'S INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS FOR THE FISCAL YEAR ENDING DECEMBER 31, 2001.

                CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Transactions Between the Company and its Officers, Directors and Affiliates

     The Company holds a note receivable from Mr. Errazuriz, the Company's
Chairman of the Board. The original note balance amounted to $606,031 payable in
four annual installments with interest at 8-1/2% per year beginning January 15,
1998. As of December 31, 2000, the balance amounted to approximately $214,000
(including interest). On June 30, 1999, the Company acquired 1,332,600 shares of
common stock of CONUSA, representing 50% of the issued and outstanding common
stock of CONUSA, from Mr. Errazuriz, CONUSA's controlling shareholder. The
Company acquired the CONUSA common stock in exchange for certain assets,
including certain real property located in Chile, as well as the forgiveness of
debt in the sum of approximately $125,000 due from Mr. Errazuriz.

     All transactions between the Company and its officers, shareholders and
each of their affiliated companies have been made on terms no less favorable to
the Company than those available from unaffiliated parties.

                                 OTHER MATTERS

     On December 12, 2000, Consonni USA, Inc., a 61% owned subsidiary of the
Registrant  sold approximately 78% of its capital stock in Construcciones
Electromecanicas Consonni, S.A. ("Consonni") to minority shareholders of
Consonni. The purchase price was two hundred and nine million pesetas
(209,000,000 Ptas.) or approximately one million, one hundred and fifteen
thousand U.S. dollars (U.S. $1,115,000).  As a consequence of this transaction,
the minority shareholders of Consonni hold an 81% equity interest in Consonni
and Consonni USA, Inc. will retain a 19% equity interest in Consonni.

     The initial payment of fifty million pesetas (50,000,000 Ptas.) or
approximately two hundred and sixty six thousand, seven hundred dollars (U.S.
$266,700.) has been received by Consonni USA, Inc.  The balance is to be paid to
Consonni, U.S.A., Inc. over five years as follows:  ten payments semiannually
commencing on June 20, 2001, the first payment in the amount of fifteen million
pesetas (15,000,000. Ptas.) or approximately eighty thousand U.S. dollars (U.S.
$80,000)  and the remaining nine payments to be in the amount of sixteen million
pesetas (16,000,000 Ptas.) or approximately eighty five thousand U.S. dollars
(U.S. $85,000).  Payments may be made in cash, promissory note or other
negotiable instrument, provided that such notes or negotiable instruments shall
mature and be payable with interest on the next corresponding payment date.

                                       8


     Apart from the above, the Board of Directors is not aware of any other
matters to come before the Annual Meeting. However, if other matters properly
come before the Annual Meeting, it is the intention of the persons named in the
enclosed form of proxy to vote said proxy in accordance with their judgment in
such matters.

                 SHAREHOLDER PROPOSALS TO BE PRESENTED AT THE
                 COMPANY'S NEXT ANNUAL MEETING OF SHAREHOLDERS

     Shareholder proposals intended to be presented at the Company's 2001 Annual
Meeting of Shareholders pursuant to the provisions of Rule 14a-8 of the
Securities and Exchange Commission promulgated under the Securities Exchange Act
of 1934, as amended, must be received by the Company at its executive offices by
March 31, 2002, for inclusion in the Company's proxy statement and form of proxy
relating to such meeting.

                           FORM 10-KSB ANNUAL REPORT

     A COPY OF THE COMPANY'S ANNUAL REPORT ON FORM 10-KSB FOR THE YEAR ENDED
DECEMBER 31, 2000 IS PROVIDED HEREWITH.


                                        By Order of the Board of Directors



                                        /s/ Pedro P. Errazuriz
                                        ----------------------
June 19, 2001                           PEDRO PABLO ERRAZURIZ
                                        CHAIRMAN OF THE BOARD

                                       9


                                     PROXY
                        ANDEAN DEVELOPMENT CORPORATION

                        ANNUAL MEETING OF SHAREHOLDERS
                                 June 29, 2001

          THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS

     The undersigned shareholder hereby appoints Pedro P. Errazuriz and
Constanza Cea, and each of them, as proxy or proxies and attorney-in-fact, each
with the power to appoint his or her substitute, on behalf and in the name of
the undersigned to represent the undersigned at the Annual Meeting of
Shareholders of ANDEAN DEVELOPMENT CORPORATION (the "Company") to be held on
June 29, 2001 and at any adjournments thereof, and to vote all shares of Common
Stock which the undersigned would be entitled to vote if personally present, as
indicated on the reverse side of this card. The undersigned acknowledges receipt
of the Notice of Annual Meeting of Shareholders and the Proxy Statement
furnished herewith.

THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY
THE UNDERSIGNED SHAREHOLDER. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED
FOR ALL OF THE NOMINEES IN PROPOSAL 1 AND FOR PROPOSAL 2. IN THEIR DISCRETION
THE PROXIES ARE AUTHORIZED TO VOTE UPON SUCH OTHER MATTERS AS MAY PROPERLY COME
BEFORE THE MEETING OR ANY ADJOURNMENTS THEREOF.


                        (CONTINUED FROM PREVIOUS PAGE)

                   THE BOARD OF DIRECTORS RECOMMENDS A VOTE
           FOR ALL OF THE NOMINEES IN PROPOSAL 1 AND FOR PROPOSAL 2

1.   ELECTION OF DIRECTORS.

     [_]  FOR ALL NOMINEES LISTED BELOW

     [_]  WITHHOLD AUTHORITY to vote for all nominees listed below

     Nominees: Pedro P. Errazuriz Dominguez, Jose Luis Yrarrazaval,
     Alberto Coddou, Sergio Jimenez, Pedro P. Errazuriz

     INSTRUCTIONS: TO WITHHOLD AUTHORITY TO VOTE FOR ANY INDIVIDUAL NOMINEE,
     WRITE THAT NOMINEE'S NAME IN THE SPACE PROVIDED BELOW:

2.   PROPOSAL TO RATIFY THE APPOINTMENT OF SPEAR, SAFER, HARMON & CO. AS THE
     COMPANY'S INDEPENDENT AUDITORS FOR 2001.

     [_]  FOR       [_] AGAINST         [_]  ABSTAIN

Date:________________________________  ____________________________________
     Signature

Date:________________________________  ____________________________________
     Signature

Please sign exactly as name appears on this proxy. When shares are held by joint
tenants, both should sign. When signing as attorney, as executor, administrator,
trustee or guardian, please give full title as such. If a corporation, please
sign in full corporate name by President or other authorized officer. If a
partnership, please sign in partnership name by authorized person.

PLEASE MARK, SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY USING THE ENCLOSED
ENVELOPE.

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