The Executive Hydroelectric Commission of the Lempa River (CEL) confirmed it has paid Astaldi $108.5 million because its choice was to either go to international arbitration or negotiate an end to the turnkey contract.

From this amount, $85 million were deducted from the contractor for the completed works. The remaining $23.5 million were paid in response to Astaldi's $52.3 million claim of incurred costs due to "unforeseen contingencies" on the right bank of the dam.

"Astaldi changed its original position that works could not continue until a new basic design was drafted and CEL assumed the $52 million in "unforeseeable contingencies" on the right bank of the work site", explained the Commission in a paid announcement.

Source: elsalvador.com

More on this topic

Agreement on Dissolution of Chaparral Contract

July 2012

The CEL and the construction company Astaldi have rescinded the contract for the dam construction by mutual agreement, with $108 million being paid to the Italian company.

The termination of the contract between Astaldi and Executive Hydroelectric Commission of the Lempa River (CEL) was endorsed by the Republic of El Salvador’s Accounts Court, which stated that "one of the effects of an annulment is that payment to the contractor is recognized on the basis of the work or services performed wholly or partly and goods delivered or received. "

Chaparral Dam Contractor to be Changed

April 2012

The works being carried out by Astaldi, are virtually paralyzed because of a disagreement over the need to redesign the plans for the dam.

The work began in 2009, and should have been operational in 2013, which has become impossible given the current lack of progress.

In 2010 the storm Agatha caused landslides where the dam was being built, which according to Astaldi required, for safety reasons, a redesign of the plans.

Dam Construction Reactivated in El Chaparral

May 2011

The talks to resume work have restarted, the cost is estimated at $19 million.

The dam construction project in the north of San Miguel, El Salvador, could soon see the light soon, after delays lasting more than a year.

The effects of hurricane Agatha and some restrictions in the contract between the Italian construction company Astaldi and the Executive Hydroelectric Commission of Rio Lempa are some of the reasons behind the delays in works.

Works on the Central Hydroelectric plant begin in El Salvador

September 2008

President Elias Antonio Saca will place the first stone for the El Chaparral central hydroelectric plant that will mark the formal start of construction.

The initial investment, estimated to be $163 million, will be financed by the Central American Bank for Economic Intergration, as was recently confirmed by the president of the Rio Lempa Hydroelectric Executive Commission (CEL), Nicolas Salume.