Dispute over power plant guarantee

[NewsWhore]

HN Energy Solutions, that lost a bid called by the government CDEEE to build two power plants to generate 600 megawatts to Sichuan Machinery & Equipment, is disputing that the government would grant a US$30 million sovereign guarantee to Sichuan for the construction of the power plants. Diario Libre reports today that the company's position is that the guarantee is illegal because it would create a privilege not granted to the other companies that participated in the tender. In a letter to Congress, HN Energy Solutions says that Sichuan won the tender with the commitment of a US$40 million guarantee that the works would be carried out and that if the civilian works did not start within 90 days and the electromechanical works in 180 days. "The Dominican government has lost out on receiving US$40 million for not executing that guarantee established in the tender," stated the company, as reported in Diario Libre. The company sent the complaint to the Chamber of Deputies and Senate that are reviewing the US$30 million sovereign guarantee. Legislators of the opposition PRD party have stated that the guarantee contract would be very onerous to the interests of the nation. HN Energy Solutions warns that if Congress approves the guarantee, a new international scandal against the Dominican Republic for violation of a government tender, could occur.

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