President Bukele announced that he would be considering suspending the controversial construction project of the El Chaparral hydroelectric dam, whose development began 10 years ago and has yet to see the light.
Remaining loyal to his style, Salvadoran President Nayib Bukele announced on Twitter that he is evaluating the possibility of suspending the project and raising the case for investigation by the Attorney General's Office.
A tender is being launched in El Salvador for construction of waterproof screens, dam drainage, spillway and stilling basin, at the hydroelectric plant El Chaparral.
El Salvador Government Purchase CEL-LP 06/17:
"The tender is for the construction of civil works for a spillway and stilling basin at the Hydroelectric Station El Chaparral, in accordance with the provisions of the technical specifications and design drawings."
The Russian company Tyazhmash will design and build a 66 MW turbine and the Salvadoran company Dycsa will build the powerhouse and finish the remaining work on the El Chaparral hydroelectric dam.
The Executive Hydroelectric Commission of the Lempa River (CEL) signed contracts with the two companies to resume work on the El Chaparral hydroelectric project, which has been on hold since 2013.
It has been announced that the tender documents to choose a company to resume work on the dam El Chaparral, estimated at $291 million, are ready.
Authorities at the Executive Hydroelectric Commission of the Lempa River (CEL) explained that they intend to draw up several contracts to segment work on the project and reduce the total cost. The actual cost of the work remaining to be done is $291 million, "...
The state energy company in El Salvador has announced that it is preparing to tender contracts for materials, civil works and machine houses in order to resume work on the hydroelectric station, which was abandoned in 2010.
Comisión Ejecutiva Hidroeléctrica del Río Lempa (CEL) intends to finance the projects with its own funds and a loan from the Central American Bank for Economic Integration (BCIE).
Only two companies were interested in the tender to continue building a work with a bad history of problems, litigation and bureaucracy.
An article in Elsalvador.com reports that "... The tender process for the construction of the El Chaparral dam is tied to an open investigation by the General Prosecutor of the Republic and to a special committee in the Legislature. "
The agreement with the Italian construction company over the liquidation of the contract for building the El Chaparral hydroelectric station means the country will avoid an international lawsuit.
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.
The Executive Hydroelectric Commission of the Lempa River in El Salvador began registering and certifying companies for the construction of the hydroelectric power plant "El Chaparral".
Some of the requirements for prequalification:
EXPERIENCE IN CONSTRUCTION CONTRACTS FOR AT LEAST TWO (2) HYDRO POWER DAMSCLOSING WITH VALUE
ADDED EQUAL OR GREATER THAN U.S. $ONE HUNDRED (100) MILLION DOLLARS.
El Salvador announced a renewable energy investment plan which will increase the share of this type of power to 70% of the energy matrix.
The President of the Executive Hydroelectric Commission of the Lempa River (CEL), Leopoldo Samour, explained that "this will increase energy production by approximately 300 megawatts, coming from use of our natural resources and in order to do this we are planning a global investment of $916 million. "
The Salvadoran industrial sector believes the dam would enlarge the energy matrix, satisfying domestic demand and reducing costs.
According to Javier Siman, president of the Salvadoran Association of Industrialists (ASI), one of the leading production costs which has risen in the last five years is energy. According to the official, this determines investment margins and upgrading of enterprises, therefore it is calling on the Executive to expedite the conclusion of this work to avoid a case similar to that of the port of La Union.
The Executive Hydroelectric Commission of the Lempa River (CEL by its initials in Spanish) in El Salvador is looking for a company to do a redesign of the project.
Commenting on the subject, Leopoldo Samour, CEL’s president, said, "Today, El Chaparral is in a phase in which we are making requests to leading international design firms, this means that the final design commission knows the development cost of the project.
The Executive Hydroelectric Commission of the Lempa River in El Salvador is generating recurring conflicts with international companies who they have contracted.
"The administration of the Executive Hydroelectric Commission of the Lempa River (CEL) is still creating expenses for Salvadorans both because of a lack of investment as well as the international arbitrations it has caused, for which it had to pay millions in compensation, and what is more, it is likely to continue to incur expenses in the 'conflict resolution'," according to an article Laprensagrafica.com.
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.
The decision of which entity will bear the costs of delays in construction of El Chaparral is being discussed between the parties.
The eight-month delay in the construction of the dam, built by the Italian company Astaldi, has generated additional costs that have not yet been estimated nor has it been determined which of the parties involved will pay them.
The Salvadoran regulator has granted a period of two years for the submission of a redesign of the project, currently on hold.
Hurrican Agatha caused the river to overflow, flooding the construction site at the place where they were preparing to build a concrete structure.
An article in Laprensagrafica notes: "Luis Mendez, head of the Superintendency of Electricity and Telecommunications (SIGET), explained that in early May, the Executive Hydroelectric Commission of Rio Lempa (CEL) submitted for consideration the plan to to allow time to evaluate the procedures and understandings related to the project between the self regulatory body and the Italian construction company, Astaldi. The project was contracted as a "turnkey project" (meaning that the design or contract cannot be changed). "