SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                ----------------

                                   FORM 10-QSB

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

         For the quarterly period ended March 31, 2001

[ ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

         For the transition period from __________ to ___________

                         Commission file number 33-90696

                             -----------------------

                         ANDEAN DEVELOPMENT CORPORATION
           (Name of small business issuer as specified in its charter)

            Florida                                      65-0648697
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization)

                                1 Brickell Square
                         801 Brickell Avenue, Suite 900
                              Miami, Florida 33131
                    (Address of principal executive offices)

                                 (305) 371-0056
                           (Issuer's telephone number)

                                ----------------

         Check whether the Issuer (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.

                                 Yes [X] No [ ]

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date. As of March 31, 2001, 2,820,100
shares of $.0001 par value common stock were outstanding.

Transitional Small Business Disclosure Format (check one) Yes [ ] No [X]

                                       1
<PAGE>

                                      INDEX

Part I.       Financial Information.


Item 1.       Financial Statements (Unaudited).


Item 2.       Management's Discussion and Analysis of Financial Condition and
              Results of Operations.


Part II.      Other Information.

                                       2
<PAGE>

                                     PART I
                              FINANCIAL INFORMATION

Item 1.  Financial Statements.

         Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to the rules and regulations
of the Securities and Exchange Commission (the "Commission"), although the
Company believes the disclosures made are adequate to make the information
presented not misleading, and, in the opinion of management, all adjustments
have been reflected which are necessary for a fair presentation of the
information shown and the accompanying notes. These condensed unaudited
financial statements should be read in conjunction with the audited financial
statements for the year ended December 31, 2000. The results for the three
months ended March 31, 2001 are not necessarily indicative of the results of
operations for a full year or of future periods.

                           CONSOLIDATED BALANCE SHEETS

                      March 31, 2001 and December 31, 2000

                                   A S S E T S
<TABLE>
<CAPTION>
                                                      March 31,  December 31,
                                                        2001         2000
                                                     ----------   ----------
                                                    (Unaudited)
<S>                                                  <C>          <C>
Current Assets:
   Cash                                              $   43,596   $  213,589
   Accounts receivable                                  100,000    2,511,838
   Notes receivable                                     520,257      148,000
   Inventory                                                 --       51,408
   Other current assets                                 169,835      180,439
                                                     ----------   ----------
         Total Current Assets                           833,688    3,105,274
                                                     ----------   ----------
Property, Plant and Equipment, net                      440,849      503,651
                                                     ----------   ----------
Other Assets:
   Goodwill                                                  --      205,157
   Note receivable from related party and other       1,529,682    1,739,558
   Investment in unconsolidated subsidiaries            138,318      243,168
   Deposits and other                                       -0-      156,767
                                                     ----------   ----------
                                                      1,668,000    2,344,650
                                                     ----------   ----------
                                                     $2,942,537   $5,953,575
                                                     ==========   ==========
</TABLE>

The accompanying notes are an integral part of these financial statements.

                                       3
<PAGE>

                 ANDEAN DEVELOPMENT CORPORATION AND SUBSIDIARIES

                     Consolidated Balance Sheets (Continued)

                      March 31, 2001 and December 31, 2000

                      LIABILITIES AND SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
                                                              March 31,    December 31,
                                                                2001            2000
                                                             -----------    -----------
                                                             (Unaudited)
<S>                                                          <C>            <C>
Current Liabilities:
   Obligations with banks                                    $    28,642    $   989,571
   Accounts payable and accrued expenses                          49,047      1,607,484
   Due to related parties                                         15,966             --
                                                             -----------    -----------
         Total Current Liabilities                                93,655      2,597,055
                                                             -----------    -----------
Long-Term Liabilities:
   Staff severance indemnities, excluding current portion         71,026         72,364
   Dividend payable                                                   --        423,018
                                                             -----------    -----------
         Total Long Term Liabilities                              71,026        495,382
                                                             -----------    -----------
Minority interest                                                197,710        572,182
                                                             -----------    -----------
Shareholders' Equity:
   Preferred stock, $.0001 par value, 5,000,000 shares
     Authorized, 0 shares issued and outstanding                      --             --
   Common stock, $.0001 par value, 20,000,000 shares
     authorized, 2,820,100 shares issued and outstanding             282            282
   Additional paid-in capital                                  5,660,187      5,724,320
   Accumulated deficit                                        (2,672,939)    (3,124,172)
   Accumulated other comprehensive income (loss)                (407,384)      (311,474)
                                                             -----------    -----------
         Total Shareholders' Equity                            2,580,146      2,288,956
                                                             -----------    -----------
                                                             $ 2,942,537    $ 5,953,575
                                                             ===========    ===========
</TABLE>

The accompanying notes are an integral part of these financial statements.

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<PAGE>

                         ANDEAN DEVELOPMENT CORPORATION

                        Consolidated Statements of Income

                   Three Months Ended March 31, 2001 and 2000

<TABLE>
<CAPTION>
                                                       2001           2000
                                                   -----------    -----------
                                                   (Unaudited)    (Unaudited)
<S>                                                <C>            <C>
Revenues from Operations:
   Revenues                                        $   250,000    $ 2,389,103
   Cost of operations                                   38,205      1,932,261
                                                   -----------    -----------

Gross Profit                                           211,795        456,842

Selling and Administrative Expenses                    187,719        436,819
                                                   -----------    -----------
Income from Operations                                  24,076         20,023
                                                   -----------    -----------
Other Income (Expense), Net                              8,658        (79,239)
                                                   -----------    -----------
Income (Loss) Before Income Taxes and
  Minority Interest                                     32,734        (59,216)

Income Taxes                                            15,373             --
                                                   -----------    -----------
Income (Loss) Before Minority Interest                  17,361        (59,216)

Minority Interest                                       10,854         76,995
                                                   -----------    -----------
Net Income (Loss)                                       28,215       (136,211)

Other Comprehensive (Loss) Income Foreign
  Currency Translation Adjustment                      (95,910)        88,038
                                                   -----------    -----------
Comprehensive Loss                                 $   (67,695)   $   (48,173)
                                                   ===========    ===========
Net Income per Common Share                        $       .01    $      (.05)
                                                   ===========    ===========
Weighted Average Shares Outstanding                  2,820,100      2,820,100
                                                   ===========    ===========
</TABLE>

The accompanying notes are an integral part of these financial statements.

                                       5
<PAGE>

                         ANDEAN DEVELOPMENT CORPORATION

                 Consolidated Statements of Shareholders' Equity

                        Three Months Ended March 31, 2001

<TABLE>
<CAPTION>
                                                                                  Accumulated Other     Total
                                          Common      Additional    Accumulated     Comprehensive    Shareholders'
                                           Stock    Paid-In Capital   Deficit       Income (Loss)       Equity
                                        -----------   -----------   -----------      -----------      -----------
<S>                                     <C>           <C>           <C>              <C>              <C>
Balance at December 31, 2000            $       282   $ 5,724,320   $(3,124,172)     $  (311,474)     $ 2,288,956

Net income (Unaudited)                           --            --        28,215               --           28,215

Rescinded dividends (Unaudited)                  --            --       423,018               --          423,018

Foreign currency translation
  adjustment (Unaudited)                         --            --            --          (95,910)         (95,910)
                                        -----------   -----------   -----------      -----------      -----------
Balance at March 31, 2001 (Unaudited)   $       282   $ 5,724,320   $(2,672,939)     $  (407,384)     $ 2,644,279
                                        ===========   ===========   ===========      ===========      ===========
</TABLE>

The accompanying notes are an integral part of these financial statements.

                                       6
<PAGE>

                         ANDEAN DEVELOPMENT CORPORATION

                      Consolidated Statements of Cash Flows

                   Three Months Ended March 31, 2001 and 2000

<TABLE>
<CAPTION>
                                                                 2001           2000
                                                             -----------    -----------
                                                             (Unaudited)    (Unaudited)
<S>                                                          <C>            <C>
Cash Flows from Operating Activities:
   Net income (loss)                                         $    28,215    $  (136,211)
   Adjustments to reconcile net income to net cash
    provided by (used in) operating activities:
     Depreciation and amortization                                21,208         32,858
     Translation adjustment                                      (95,910)        88,038
     Minority interest                                          (374,472)       (10,095)
     Changes in assets and liabilities:
       (Increase) decrease in:
         Accounts receivable                                   2,411,838        504,205
         Inventory                                                51,408       (239,714)
         Other current assets                                    (10,604)      (428,585)
         Notes receivable                                         56,243             --
         Deferred charges                                             --        (15,924)
         Other assets                                             92,634       (104,008)
         Goodwill                                                205,157             --
       Increase (decrease) in:
         Accounts payable and accrued expenses                (1,527,649)       201,840
         Income taxes payable                                    (30,788)          (338)
         Staff severance indemnity                                (1,338)         5,810
                                                             -----------    -----------
Net Cash Provided by (Used in) Operating Activities              825,942       (102,124)
                                                             -----------    -----------
Cash Flows from Investing Activities:
   Matured time deposits                                              --        111,126
   Purchase of fixed assets                                           --       (126,782)
   Disposition of fixed assets                                    62,802             --
   Investment in unconsolidated subsidiaries                     104,850             --
                                                             -----------    -----------
Net Cash Provided by (Used in) Investing Activities              167,652        (15,656)
                                                             -----------    -----------
</TABLE>

                                       7
<PAGE>

                         ANDEAN DEVELOPMENT CORPORATION

                Consolidated Statements of Cash Flows (Continued)

                   Three Months Ended March 31, 2001 and 2000

<TABLE>
<CAPTION>
                                                                                              2001           2000
                                                                                          -----------    -----------
                                                                                          (Unaudited)    (Unaudited)
<S>                                                                                       <C>            <C>
Cash Flows from Financing Activities:
   Borrowings from (advances to) related parties                                          $  (202,658)   $   269,270
   Proceeds from (payments on) obligations with bank                                         (960,929)       574,737
   Principal payments on long-term debt                                                            --       (587,554)
   Due to public entities                                                                          --         55,087
                                                                                          -----------    -----------
Net Cash (Used in) Provided by Financing Activities                                        (1,163,587)       311,540
                                                                                          -----------    -----------
Net (Decrease) Increase in Cash                                                              (169,993)       193,760

Cash at Beginning of Period                                                                   213,589        125,163
                                                                                          -----------    -----------
Cash at End of Period                                                                     $    43,596    $   318,923
                                                                                          ===========    ===========
Supplemental Disclosure of Cash Flow Information:
   Cash paid during the quarter for interest                                              $     1,987    $        --
   Cash paid during the quarter for taxes                                                      15,373             --

Supplemental Disclosure of Non-Cash
 Financing Activities:
   Rescinded dividends                                                                       (423,018)            --
</TABLE>

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         Basis of Presentation - The quarterly financial information included
herein is unaudited; however, such information reflects all adjustments
(consisting solely of normal recurring adjustments) which are, in opinion of
management, necessary for a fair statement of results for the interim period.
For further information, refer to the financial statements and notes thereto
included in the Company's form 10-KSB as of and for the year ended December 31,
2000.

         Functional Currency - The financial statements have been translated in
accordance with the provisions set forth in Statement of Financial Accounting
Standards No. 52, from Chilean pesos (the functional currency) into US dollars
(the reporting currency).

         Earnings Per Common Share - Earnings per common share are based on the
weighted average number of shares outstanding of 2,820,100 for the periods ended
March 31, 2001 and 2000, respectively, after giving effect to common stock
equivalents which consist of warrants issued with the initial public offering
that would have a dilutive effect on earnings per share. Warrants issued with
exercise prices greater than the existing market value of the company stock are
deemed anti-dilutive and are not components of earnings per share.

                                       8
<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

         Management's Discussion and Analysis contains various "forward looking
statements" within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended, regarding future events or the future financial performance of
the Company that involve risks and uncertainties. Certain statements included in
this Form 10-QSB, including, without limitation, statements related to
anticipated cash flow sources and uses, and words including but not limited to
"anticipates", "believes", "plans", "expects", "future" and similar statements
or expressions, identify forward looking statements. Any forward-looking
statements herein are subject to certain risks and uncertainties in the
Company's business, including but not limited to, reliance on key customers and
competition in its markets, market demand, product performance, technological
developments, maintenance of relationships with key suppliers, difficulties of
hiring or retaining key personnel and any changes in current accounting rules,
all of which may be beyond the control of the Company. The Company's actual
results could differ materially from those anticipated in these forward-looking
statements as a result of certain factors, including those set forth herein.

         Management's Discussion and Analysis of Financial Condition and Results
of Operations ("MD&A") should be read in conjunction with the consolidated
financial statements included herein. Further, this quarterly report on Form
10-QSB should be read in conjunction with the Company's Consolidated Financial
Statements and Notes to Consolidated Financial Statements included in its 2000
Annual Report on Form 10-KSB. In addition, you are urged to read this report in
conjunction with the risk factors described herein.

GENERAL

         Andean Development Corporation ("ADC" or the "Company") was
incorporated in Florida on October 19, 1994 as a holding company to acquire
Errazuriz y Asociados Ingenieros S.A. ("E&A") and Igenor Andina S.A. ("INA"),
both Chilean corporations located in Santiago, Chile. Except as otherwise
specifically noted, ADC, E&AI and INA are collectively referred to herein as the
"Company."

         E&A acts as the agent in the sale of major electrical and mechanical
equipment and in technical assistance for both turnkey and non-turnkey major
works, mainly related to the development and construction of energy, water and
sewage treatment projects in Chile.

         INA provides engineering and project management services for water and
energy related private and public works.

         The Company is in the initial stages of developing software and a
communicating network for (i) rural area remote education, and (ii) post grade
professional education "at home" for Union leaders and top employees in Chile,
which, if successful, could be adopted and developed in other countries in South
America.

                                       9
<PAGE>

                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                 COMPARISON OF THREE MONTHS ENDED MARCH 31, 2001
                      TO THREE MONTHS ENDED MARCH 31, 2000

Gross Revenues and Costs of Operations

Gross revenues decreased from $2,389,103 for the three months ended March 31,
2000 to $250,000 for the three months ended March 31, 2001, a decrease of
$2,139,103. The decrease in gross revenues is a result of the sale of certain
subsidiaries during 2000 and the loss in revenues from Consonni as a consequence
of the sale of most of the Company's interest in Consonni.

Cost of Operations decreased from $1,932,261 for the three months ended March
31, 2000 to $38,205 for the three months ended March 31, 2001, a decrease of
$1,894,056. This decrease comes primarily from a decrease in operational costs
following the sale of certain subsidiaries during 2000 and the decrease in
revenues resulting from the sale of most of the Company's interest in Consonni.

Selling and Administrative Expenses, Incomes from Operations and Other Income
(Expenses)

Selling and Administrative Expenses decreased from $436,819 for the three months
ended March 31, 2000 to $187,719 for the three months ended March 31 2001, a
decrease of $249,100. This decrease comes primarily from a decrease in
operational costs following the sale of certain subsidiaries during 2000.

Income from Operations, increased from $20,023 for the three months ended March
31, 2000 to $24,076 for the three months ended March 31, 2001.

Other Income (Expenses) increased from net expenses of ($79,239) for the three
months ended March 31, 2000 to income of $8,658 for the three months ended March
31, 2001. This comes primarily from a decrease in expenses following the sale of
certain subsidiaries during 2000 and the decrease in expenses resulting from the
sale of most of the Company's interest in Consonni.

                                       10
<PAGE>

Net Income and Income Tax

Net Income increased from a loss of ($136,211) for the three months ended March
31, 2000 to net income of $28,215 for the three months ended March 31, 2001,
primarily as a result of the sale of certain subsidiaries and most of the
Company's interest in Consonni.

Liquidity and Capital Resources

         The Company has financed its operations and other working capital
requirements principally from operating cash flow.

Current Assets

Cash and Short Term Investments decreased from $213,589 as of December 31, 2000
to $43,596 at the three month period ended March 31, 2001, a decrease of
$169,993. As of December 31, 2000 and at the three month period ended March 31,
2001, the Company has no short-term investments. This decrease comes primarily
from a decrease in cash following the sale of certain subsidiaries during 2000,
including most of the Company's interest in Consonni.

Accounts receivable decreased from $2,511,838 at December 31, 2000 to $100,000
at the three month period ended March 31, 2001, a decrease of $2,411,838. This
decrease comes primarily from a decrease in accounts receivable following the
sale of certain subsidiaries during 2000 and the sale of most of the Company's
interest in Consonni.

Inventory and other current assets decreased from $231,847 as of December 31,
2000 to $169,835 at the three month period ended March 31, 2001, a decrease of
$62,012.

Total Current Assets decreased from $3,105,274 at December 31, 2000 to $833,688
for the three month period ended March 31, 2001, a decrease of $2,271,586. This
decrease was primarily due to the sale of certain subsidiaries during 2000.

Property, plant and equipment decreased from $503,651 at December 31, 2000 to
$440,849 at the three month period ended March 31, 2001, a decrease of $62,802.

Other assets decreased from $2,344,650 at December 31, 2000 to $1,668,000 for
the three month period ended March 31, 2001, a decrease of $676,650. This
decrease is primarily the result of a decrease in investments in subsidiaries in
2000, a write off of goodwill, and the sale of those subsidiaries during 2000.

                                       11
<PAGE>

Liabilities

Current liabilities decreased from $2,597,055 at December 31, 2000, to $93,655
at the three month period ended March 31, 2001. This decrease comes primarily
from a decrease in liabilities following the sale of certain subsidiaries during
fiscal 2000 and the sale of most of the Company's interest in Consonni.

Long-term liabilities decreased from $495,382 at December 31, 2000 to $71,026 at
the three month period ended March 31, 2001, due to the Company decision to
rescind a declared dividend.

         The Company anticipates that its cash requirements will continue to
increase as it continues to expend substantial resources to build its
infrastructure, develop its business plan and establish its sales and marketing
network operations, customer support and administrative organizations. The
Company currently anticipates that its available cash resources and cash
generated from operations will be sufficient to meet its presently anticipated
working capital and capital expenditure requirements for the next twelve months.
As of March 31, 2001, there were no commitments for long term capital
expenditures. If the Company is unable to maintain profitability, or seeks
further expansion, additional funding will become necessary. No assurances can
be given that either equity or debt financing will be available.

                                       12
<PAGE>

                                     PART II
                                OTHER INFORMATION

Item 1.  Legal Proceedings

         None.

Item 2.  Changes in Securities

         None.

Item 3.  Defaults Upon Senior Securities

         None.

Item 4.  Submission of Matters to a Vote of Security Holders

         None.

Item 5.  Other Information

Item 6.  Exhibits and Reports on Form 8-K

         (a)      The following Exhibits are filed as part of the Quarterly
                  Report on Form 10-QSB

                  None.

         (b)      Reports on Form 8-K:

                  None.

                                       13
<PAGE>

                                   SIGNATURES

         In accordance with the requirements of the Exchange Act, the Registrant
has caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.


                                     ANDEAN DEVELOPMENT CORPORATION

                                     By: /s/ Pedro Pablo Errazuriz
                                        ----------------------------------------
                                         Pedro Pablo Errazuriz
Date: May 11, 2001                      President and Chief Executive Officer

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