NewsWhore
07-31-2008, 05:10 PM
Concesionaria Dominicana de Autopistas y Carreteras (Codacsa) is suing the Dominican government in an international arbitration court in Paris because the Dominican government didn't fulfill its contractual obligations. Public Works Minister Victor Diaz Rua says the company doesn't have the resources to complete the Santo Domingo-La Romana highway and has been using toll monies and wants to rescind the contract. According to Diaz Rua, Codacsa explained to him, in a memo, that they only had RD$235 million to complete the RD$4 billion project. He says they are seven years into the project and have only invested US$6 million, total. Diaz Rua says Codacsa wants to build the highway using the toll money and then keep the revenues from the three tolls.
Codacsa says the project stalled because the government was supposed to provide US$10 million before the start of the project mitigate foreign exchange risks. Roberto Garcia, spokesman for Codacsa, says that because of the government's delay, the company was never able to secure two loans that were necessary to expedite the construction. Diaz Rua counters that those funds would only be dispersed once Codacsa made its initial investment, which he says Codacsa hasn't made.
The contract to build the highway was agreed upon in 2002 and began in 2003 with an expected cost of RD$4 billion. The project would have three tollbooths and the investment would have been recovered in tollbooth revenues over 30 years. Acording to Public Works, only 30%, or 17 kilometers of the road have been built.
Codacsa, says that through May 2008, they have invested RD$1.36 billion in construction RD$155 million in maintenance and RD$145 million in operational costs, plus RD$30 million in engineering projects.
Diaz Rua disputes that the company might have intentions to sell the concession for US$111 million.
More... (http://www.dr1.com/index.html#7)
Codacsa says the project stalled because the government was supposed to provide US$10 million before the start of the project mitigate foreign exchange risks. Roberto Garcia, spokesman for Codacsa, says that because of the government's delay, the company was never able to secure two loans that were necessary to expedite the construction. Diaz Rua counters that those funds would only be dispersed once Codacsa made its initial investment, which he says Codacsa hasn't made.
The contract to build the highway was agreed upon in 2002 and began in 2003 with an expected cost of RD$4 billion. The project would have three tollbooths and the investment would have been recovered in tollbooth revenues over 30 years. Acording to Public Works, only 30%, or 17 kilometers of the road have been built.
Codacsa, says that through May 2008, they have invested RD$1.36 billion in construction RD$155 million in maintenance and RD$145 million in operational costs, plus RD$30 million in engineering projects.
Diaz Rua disputes that the company might have intentions to sell the concession for US$111 million.
More... (http://www.dr1.com/index.html#7)