NewsWhore
01-29-2008, 06:20 PM
Almost two years have gone by and not even the officials in charge of the two proposed coal energy plants have explanations for the delays. The State Run Electric Companies (CDEEE) contracted the plants to produce 600 MW each of energy, arguing they would make the DR less dependent on petroleum-based fuels. Listin reports that construction on the project was to begin 90 days after the contracts were signed. The Listin speculates a lack of resources could be behind the delays. It points out that the environmental studies have not been concluded, nor the land utility declaration of public lands has been issued for the construction site. The only progress that has been made was the governmental securing of a US$30 million loan, which according to investors, was needed for the company to access the remaining financing for the plants. Of the two companies winning the governmental bid, one of the winners, Emirates Power eventually removed itself from the project, to be replaced by the Grupo Vicini/Seabord Consortium.
This company and Sichuan were awarded the contract after the government changed the conditions of the tender when the original winners of the tender could not meet the contracted conditions. The contracts were firmly opposed in the press by experts that considered they will be another burden to the state, as in the case of Smith-Enron, and Cogentrix power plants. Opponents criticize the obligation of the state to purchase power at above market prices and 90% of the energy generated by the two coal plants. The CDEEE contractually is obliged to supply the fuel to power the plants. The government is obliged to provide the land where the plants were to be built and pay for the installations necessary to connect the Sichuan energy plant to the national energy grid.
Listin adds that technical reports on the project had to be handed over 60 days after the contracts had been signed, which hasn't been done either. Adding to delays is that no one knows where the US$1.6 billion for the project will come from.
Opponents urge the government to call a new tender with the more advantageous conditions in order to attract higher profile companies.
More... (http://www.dr1.com/index.html#4)
This company and Sichuan were awarded the contract after the government changed the conditions of the tender when the original winners of the tender could not meet the contracted conditions. The contracts were firmly opposed in the press by experts that considered they will be another burden to the state, as in the case of Smith-Enron, and Cogentrix power plants. Opponents criticize the obligation of the state to purchase power at above market prices and 90% of the energy generated by the two coal plants. The CDEEE contractually is obliged to supply the fuel to power the plants. The government is obliged to provide the land where the plants were to be built and pay for the installations necessary to connect the Sichuan energy plant to the national energy grid.
Listin adds that technical reports on the project had to be handed over 60 days after the contracts had been signed, which hasn't been done either. Adding to delays is that no one knows where the US$1.6 billion for the project will come from.
Opponents urge the government to call a new tender with the more advantageous conditions in order to attract higher profile companies.
More... (http://www.dr1.com/index.html#4)