NewsWhore
06-14-2007, 03:00 PM
The contract that the State-Run Electricity Companies (CDEEE) signed with the Sichuan Machinery & Equipment Company, to build a coal burning energy plant that would produce 600 MW of energy has been modified several times to improve profitability for Sichuan, against the better interests of the Dominican Republic, reports Diario Libre. According to the newspaper, the company was originally going to deposit a US$10 million guarantee into a bank account if the project didn't start in 120 days. Also, the company was to deposit another US$10 million in an account if electro-mechanical work didn't begin in 210 days, but those deposits were never made. As for the CDEEE's side of the agreement Diario Libre explains that initially the CDEEE had to present a US$21 million bank guarantee but this sum was raised to the status of a US$30 million sovereign guarantee. Later the contract was modified so that the government would guarantee to buy 7,884 hours of power a year, which amounts to 90% of the energy that Sichuan will theoretically produce. Finally the price of the energy produced was originally agreed at RD$2.57 cents /kWh but has been increased to RD$2.90/kWh.
The newspaper warns that the contract as modified by the CDEEE and sent to Congress for approval would be notoriously onerous for Dominican consumers, and would compromise state finances. A competitor, is contending that Sichuan won a tender with the original contractual conditions, and these should not now be modified.
More... (http://www.dr1.com/index.html#5)
The newspaper warns that the contract as modified by the CDEEE and sent to Congress for approval would be notoriously onerous for Dominican consumers, and would compromise state finances. A competitor, is contending that Sichuan won a tender with the original contractual conditions, and these should not now be modified.
More... (http://www.dr1.com/index.html#5)