<PAGE>

                    U.S. 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, 2002

[ ]      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

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

                             1224 Washington Avenue
                           Miami Beach, Florida 33139
                    (Address of principal executive offices)

                                 (305) 866-3360
                           (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, 2002, 2,820,100
shares of $.0001 par value common stock were outstanding.

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

                         ANDEAN DEVELOPMENT CORPORATION

                                      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.
<PAGE>

                         ANDEAN DEVELOPMENT CORPORATION

PART I   FINANCIAL INFORMATION

Item 1.  Financial Statements

        Certain information and footnote disclosures normally included in
        financial statements prepared in accounting principles generally
        accepted in the United States of America 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, 2001. The results for the
        nine months ended March 31, 2002 are not necessarily indicative of the
        results of operations for a full year or of future periods.

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

                         ANDEAN DEVELOPMENT CORPORATION

                           Consolidated Balance Sheets

                      March 31, 2002 and December 31, 2001

<TABLE>
<CAPTION>

                                                     A S S E T S

                                                                            March 31,                   December 31,
                                                                              2002                         2001
                                                                     -----------------------        -------------------
                                                                            (Unaudited)
<S>                                                                      <C>                         <C>
Current Assets:
   Cash                                                                  $          4,425            $             931
   Accounts receivable                                                            184,187                      185,687
   Notes receivable                                                               251,588                      327,911
   Other current assets                                                           214,263                      168,279
                                                                         ----------------            -----------------

         Total Current Assets                                                     654,463                      682,808
                                                                         ----------------            -----------------

Property, Plant and Equipment, net                                                359,506                      379,842
                                                                         ----------------            -----------------

Other Assets:
   Note receivable from related party and other                                 1,347,755                    1,415,273
   Investment in unconsolidated subsidiaries                                        2,543                        2,543
   Deposits and other                                                             268,483                           -
   Advances under agreement                                                            -                       264,231
                                                                         ----------------            -----------------

                                                                                1,618,781                    1,682,047
                                                                         ----------------            -----------------

                                                                         $      2,632,750            $       2,744,697
                                                                         ================            =================
</TABLE>

   The accompanying notes are an integral part of these consolidated financial
                                  statements.
<PAGE>

                 ANDEAN DEVELOPMENT CORPORATION AND SUBSIDIARIES

                     Consolidated Balance Sheets (Continued)

                      March 31, 2002 and December 31, 2001

                      LIABILITIES AND SHAREHOLDERS' EQUITY

<TABLE>
<CAPTION>

                                                                              March 31,                   December 31,
                                                                                2002                         2001
                                                                       -----------------------        -------------------
                                                                             (Unaudited)
<S>                                                                      <C>                         <C>
Current Liabilities:
   Obligations with banks                                                $           15,050          $           35,310
   Accounts payable and accrued expenses                                             67,097                      98,237
   Due to related parties                                                            32,729                      49,203
   Current portion of long-term debt                                                 34,352                      34,923
   Income taxes payable                                                              11,253                          -
                                                                         ------------------          ------------------

         Total Current Liabilities                                                  160,481                     217,673
                                                                         ------------------          ------------------

Long-Term Liabilities:
   Long-term debt, excluding current portion                                         74,185                      75,503
   Staff severance indemnities                                                       35,653                      39,427
                                                                         ------------------          ------------------

                                                                                    109,838                     114,930
                                                                         ------------------          ------------------

Minority interest                                                                   192,505                     196,019
                                                                         ------------------          ------------------

Shareholders' Equity:
   Preferred stock, $.0001 par value, 5,000,000 shares
     authorized, no 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                   5,660,187
   Accumulated deficit                                                           (3,097,221)                 (3,105,509)
   Accumulated other comprehensive income (loss)                                   (393,322)                   (338,885)
                                                                         ------------------          ------------------

         Total Shareholders' Equity                                               2,169,926                   2,216,075
                                                                         ------------------          ------------------

                                                                         $        2,632,750          $        2,744,697
                                                                         ==================          ==================
</TABLE>

   The accompanying notes are an integral part of these consolidated financial
                                  statements.
<PAGE>

                         ANDEAN DEVELOPMENT CORPORATION

                        Consolidated Statements of Income

                   Three Months Ended March 31, 2002 and 2001

<TABLE>
<CAPTION>

                                                                                2002                        2001
                                                                       ---------------------      -----------------------
                                                                            (Unaudited)                 (Unaudited)
<S>                                                                      <C>                         <C>
Revenues from Operations:
   Revenues                                                              $         102,074           $         250,000
   Cost of operations                                                               30,417                      38,205
                                                                         -----------------           -----------------

Gross Profit                                                                        71,657                     211,795

Selling and Administrative Expenses                                                 34,139                     187,719
                                                                         -----------------           -----------------

Income from Operations                                                              37,518                      24,076
                                                                         -----------------           -----------------

Other Income (Expense), Net                                                        (29,230)                      8,658
                                                                         -----------------           -----------------

Income Before Income Taxes and
  Minority Interest                                                                  8,288                      32,734

Income Taxes                                                                            -                       15,373
                                                                         -----------------           -----------------

Income Before Minority Interest                                                      8,288                      17,361

Minority Interest                                                                       -                       10,854
                                                                         -----------------           -----------------

Net Income                                                                           8,288                      28,215

Other Comprehensive Loss;
   Foreign Currency Translation Adjustment                                         (54,437)                    (95,910)
                                                                         -----------------           -----------------

Comprehensive Loss                                                       $         (46,149)          $         (67,695)
                                                                         =================           =================

Net Income per Common Share                                              $            .003           $             .01
                                                                         =================           =================

Weighted Average Shares Outstanding                                              2,820,100                   2,820,100
                                                                         =================           =================
</TABLE>

   The accompanying notes are an integral part of these consolidated financial
                                  statements.
<PAGE>

                         ANDEAN DEVELOPMENT CORPORATION

                 Consolidated Statements of Shareholders' Equity

                        Three Months Ended March 31, 2002

<TABLE>
<CAPTION>
                                                                                                                  Accumulated Other
                                                 Common              Additional              Accumulated            Comprehensive
                                                 Stock             Paid-In Capital             Deficit              Income (Loss)
                                          -------------------   --------------------    -------------------    --------------------
<S>                                         <C>                   <C>                     <C>                    <C>
Balance at December 31, 2001                $            282      $       5,660,187       $     (3,105,509)      $        (338,885)

Net income (Unaudited)                                    -                      -                   8,288                      -

Foreign currency translation
  adjustment (Unaudited)                                  -                      -                      -                  (54,437)
                                            ----------------      -----------------       -----------------      ------------------

Balance at March 31, 2002 (Unaudited)       $            282      $       5,660,187       $     (3,097,221)      $        (393,322)
                                            ================      =================       =================      ==================

<CAPTION>
                                                      Total
                                                  Shareholders'
                                                     Equity
                                             --------------------
<S>                                            <C>
Balance at December 31, 2001                   $      2,216,075

Net income (Unaudited)                                    8,288

Rescinded dividends (Unaudited)                              -

Foreign currency translation
  adjustment (Unaudited)                                (54,437)
                                               ----------------

Balance at March 31, 2002 (Unaudited)          $      2,169,926
                                               ================
</TABLE>

   The accompanying notes are an integral part of these consolidated financial
                                  statements.
<PAGE>

                         ANDEAN DEVELOPMENT CORPORATION

                      Consolidated Statements of Cash Flows

                   Three Months Ended March 31, 2002 and 2001

<TABLE>
<CAPTION>

                                                                                2002                        2001
                                                                       -----------------------     ----------------------
                                                                             (Unaudited)                 (Unaudited)
<S>                                                                      <C>                         <C>
Cash Flows from Operating Activities:
   Net income                                                            $           8,288           $          28,215
   Adjustments to reconcile net income to net cash
    (used in) provided by operating activities:
     Depreciation and amortization                                                  20,336                      21,208
     Translation adjustment                                                        (54,437)                    (95,910)
     Minority interest                                                              (3,514)                   (374,472)
     Changes in assets and liabilities:
       (Increase) decrease in:
         Accounts receivable                                                         1,500                   2,411,838
         Inventory                                                                      -                       51,408
         Other current assets                                                      (45,984)                    (10,604)
         Notes receivable                                                           76,323                      56,243
         Deposits and other assets                                                (268,483)                     92,634
         Goodwill                                                                       -                      205,157
       Increase (decrease) in:
         Accounts payable and accrued expenses                                     (31,140)                 (1,527,649)
         Income taxes payable                                                       11,253                     (30,788)
         Staff severance indemnity                                                  (3,774)                     (1,338)
                                                                         -----------------           -----------------

Net Cash (Used in) Provided by Operating Activities                               (289,632)                    825,942
                                                                         -----------------           -----------------

Cash Flows from Investing Activities:
   Disposition of fixed assets                                                          -                       62,802
   Investment in unconsolidated subsidiaries                                            -                      104,850
                                                                         -----------------           -----------------

Net Cash Provided by Investing Activities                                               -                      167,652
                                                                         -----------------           -----------------
</TABLE>

   The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>

                         ANDEAN DEVELOPMENT CORPORATION

                Consolidated Statements of Cash Flows (Continued)

                   Three Months Ended March 31, 2002 and 2001

<TABLE>
<CAPTION>
                                                                                2002                       2001
                                                                         -------------------       --------------------
                                                                             (Unaudited)               (Unaudited)
<S>                                                                       <C>                        <C>
Cash Flows from Financing Activities:
   Borrowings from (advances to) related parties                          $        315,275           $        (202,658)
   Proceeds from (payments on) obligations with bank                               (20,260)                   (960,929)
   Principal payments on long-term debt                                             (1,889)                         -
                                                                          ----------------           -----------------

Net Cash Provided by (Used in) Financing Activities                                293,126                  (1,163,587)
                                                                          ----------------           -----------------

Net Increase (Decrease) in Cash                                                      3,494                    (169,993)

Cash at Beginning of Period                                                            931                     213,589
                                                                          ----------------           -----------------

Cash at End of Period                                                     $          4,425           $          43,596
                                                                          ================           =================

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>

 The accompanying notes are an integral part of these consolidated financial
                                  statements.
<PAGE>

                         ANDEAN DEVELOPMENT CORPORATION

                   Notes to Consolidated Financial Statements

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 the opinion of management, necessary
              for a fair statement of results for the interim period. For
              further information, refer to the consolidated financial
              statements and notes thereto included in the Company's form 10-KSB
              as of and for the year ended December 31, 2001.

              Functional Currency - The consolidated 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, 2002 and 2001, respectively. Warrants
              issued with exercise prices greater than the existing market value
              of the company stock are deemed anti-dilutive and are not compo
              nents of earnings per share.

      The accompanying notes are an integral part of these consolidated
      financial statements.
<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 the Securities Act of 1933, as amended, the
Securities and Exchange Act of 1934, as amended, and the Private Securities
Litigation Reform Act 1995. Such statements consist of any statement other than
a recitation of historical fact and can be identified by the use of
forward-looking terminology such as "may", "expect", "anticipate", "estimate" or
"continue" or the negative thereof or other variations thereon or comparable
terminology.

         The Company cautions that these statements are further qualified by
important factors that could cause actual results to differ materially from
those contained in the forward-looking statements, that these forward-looking
statements are necessarily speculative, and there are certain risks and
uncertainties that could cause actual events or results to differ materially
from those referred to in such forward-looking statements.

         The Company does not have a policy of updating or revising
forward-looking statements and thus it should not be assumed that silence by
management of the Company over time means that actual events are bearing out as
estimated in such forward-looking statements.

         Management's Discussion and Analysis of Financial Condition and Results
of Operations should be read in conjunction with the 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 2001 Annual Report on Form
10-KSB and the risk factors described therein.

GENERAL

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

            AE&A provides engineering and project management services for water
and energy related private and public works and provides 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
acts as the agent in the sale of major electrical and mechanical equipment.

         INA is also developing, in a joint venture with genteAndina S.A., a
Chilean company specializing in education ("genteAndina S.A"), a communication
network and related software for (i) rural area remote education, and (ii) post
graduate professional education "at home" for Union leaders and key employees in
Chile, which, if successful, could be adopted and developed in other countries
in South America. On April 1, 2001, the Company executed an agreement with an
unrelated company, genteAndina, S. A. in which the Company will invest
approximately $500,000 in exchange for guaranteed interest income of 1/2%
monthly and 35% of the profits of
<PAGE>

genteAndina, S. A. genteAndina, S. A. will continue developing the software and
projects previously undertaken by the Company. As of December 31, 2001,
approximately $425,000 was advanced to genteAndina, S. A. under this agreement
and is included in deposits and other in the accompanying consolidated financial
statements.

            The Company, supported by the government of Chile and by certain
Chilean institutions, is developing at the Company's cost:

    .    Software to be used to educate the school populations of indigenous
         rural communities located in isolated areas in the mountains of Chile
         or close to its coast line, and

    .    Software to teach leadership, and other related matters, to union
         leaders in Chile, highly qualified employees of the government of
         Chile, and to certain private industries such as Corporacion del Cobre
         de Chile, Chilean Copper Corporation ("Codelco").

            The Company has entered into an agreement with Codelco, through one
of the Company's sponsoring institutions, Fundacion Tucapel Jimenez Alfaro, by
which the Company will provide educational services to union leaders at
Codelco's Andina Division. Codelco is the industry leader in the Chilean mining
industry and the Company anticipates, but cannot guarantee, that once the
Codelco project proves successful, other Chilean companies will execute similar
agreements.

            Currently, the Company is well positioned in its core business
segment to take advantage of an economic upturn in the large projects sector,
since the Company is well established in its marketplace and has maintained
customers who are established in their specialties.

            The Company is also the majority owner (83.6%) of a non-operating
subsidiary, Consonni USA, Inc. ("Consonni"), the assets of which consist of cash
and notes receivables. In 2000, the Company sold the operating subsidiary of
Consonni.

            On August 31, 2001, the Company extended the expiration date of its
Redeemable Common Stock Purchase Warrants (the "Warrants") from November 13,
2001 to November 13, 2003. The Company originally issued the Warrants in
connection with a stock offering on Registration Statement Form SB-2 (SEC File
No. 333-90696) which was declared effective by the Securities and Exchange
Commission on November 13, 1996.

                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                COMPARISON OF THREE MONTHS ENDED MARCH 31, 2002
                      TO THREE MONTHS ENDED MARCH 31, 2001

Gross Revenues and Costs of Operations

Gross revenues decreased from $250,000 for the three months ended March 31, 2001
to $102,074 for the three months ended March 31, 2002, a decrease of $153,580.
The decrease in gross revenues is a result of the sale of certain subsidiaries
in the last two fiscal years, general economic conditions, including financial
instability in Argentina, implementation of the business strategy and a decrease
in operational costs.
<PAGE>

Cost of Operations decreased from $38,205 for the three months ended March 31,
2001 to $34,417 for the three months ended March 31, 2002, a decrease of $3,788.
This decrease comes primarily from a decrease in operational costs following the
sale of certain subsidiaries during the last two fiscal years and a decrease of
operational costs resulting from the implementation of the business strategy.

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

Selling and Administrative Expenses decreased from $187,719 for the three months
ended March 31, 2001 to $34,139 for the three months ended March 31 2002, a
decrease of $153,580. This decrease is primarily a result of the sale of certain
subsidiaries during the last two fiscal years and the decrease in revenues and
operating costs as a result of the implementation of the business strategy.

Income from Operations, increased from $24,076 for the three months ended March
31, 2001 to $37,518 for the three months ended March 31, 2002, an increase of
$13,442.

Other Income (Expenses) decreased from a net income of $8,658 for the three
months ended March 31, 2001 to net expenses of ($29,230) for the three months
ended March 31, 2002. This decrease is primarily as a result of the sale of
certain subsidiaries during the last two fiscal years and the decrease in
revenues and operating costs as a result of the implementation of the business
strategy.

Net Income and Income Tax.

Net income before income taxes decreased from $32,734 for the three months ended
March 31, 2001 to $8,288 for the three months ended March 31, 2002, and taxes
decreased in the same period from $15,373 to $-0-. In the same period, the
corresponding portion of the minority interest decreased from $10,854 to $-0-.
As a consequence of the previous figures, the net income of the Company
decreased in the period from $28,215 to $8,288, primarily due to the decrease in
gross revenues.

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 increased from $931 as of December 31, 2001 to
$4,425 at the three month period ended March 31, 2002, an increase of $3,494. As
of December 31, 2001 and at the three month period ended March 31, 2002, the
Company has no short-term investments. This increase in cash and a decrease in
operating costs as a result of the implementation of the business strategy.

Accounts receivable decreased from $185,687 at December 31, 2001 to $184,187 at
the three month period ended March 31, 2002, a decrease of $1,500.
<PAGE>

Total Current Assets decreased from $682,808 at December 31, 2001 to $654,463
for the three month period ended March 31, 2002, a decrease of $28,345. This was
a result of the decrease of revenues as a consequence of the implementation of
the business strategy.

Property, plant and equipment decreased from $379,842 at December 31, 2001 to
$359,506 at the three month period ended March 31, 2002, a decrease of $20,336,
primarily as a result of the implementation of the business strategy.

Other assets decreased from $ 1,682,047 at December 31, 2001 to $1,618,781 for
the three month period ended March 31, 2002, a decrease of $63,266. This
decrease is a result of the implementation of the business strategy which does
not include investments in subsidiaries.

Liabilities

Current liabilities decreased from $217,673 at December 31, 2001, to $160,481 at
the three month period ended March 31, 2002, a decrease of $57,192. This
decrease is as a result of implementation of the business strategy of reducing
debt through consolidation and limiting expenditures, and a decrease in
operating costs as a result of the implementation of the business strategy.

Long-term liabilities decreased from $114,930 at December 31, 2001 to $109,838
at the three month period ended March 31, 2002, a decrease of $5,092.

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,
2002, 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.

                 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
<PAGE>

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.

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.

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
<PAGE>

decrease in investments in subsidiaries in 2000, a write off of goodwill, and
the sale of those subsidiaries during 2000.

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.
<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.
<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
Date: May 15, 2002                                 President and Chief Executive
                                                             Officer
                                                   -----------------------------