Jaguar Energy Prepares Arbitration With Chinese Contractor

$300 million is being claimed for breach of contract for the project to build power generation facilities in Guatemala.

Thursday, January 30, 2014

Jaguar Energy Guatemala (JEG), has instigated arbitration with the firm China Machine New Energy Corporation (CMNC). The company is claiming $300 million for violations in the construction of a 300 MW plant in Escuintla. "The arbitration has been instigated with the International Chamber of Commerce in Paris and will be effected based on the laws of New York ."

" ... This amount includes cost overruns incurred from having to complete the project, penalties, advances paid to CMNC and outstanding payments to suppliers," confirmed Jose Sarmiento, manager of JEG .

For his part, the Regulatory Director at Energuate , Dimas Carranza, said he still does not know the details of the arbitration. "Energuate has already notified JEG that it has breached contract with them, over the qualification of the contractor required in the tender" .



More on this topic

Jaguar Energy Wins Case Against Chinese CMNC

October 2016

Jaguar Energy Guatemala has announced that it won the international arbitration case against China Machine New Energy Corporation, which has to pay the former entity $149 million.

According to the company, as a result of the decision from the arbitral tribunal, the power plant based on coal will remain its property, and the Chinese company will have to pay $149 million.

Construction: Cost Overruns in Guatemala As Well

January 2014

The Chinese construction company building a power plant for Jaguar Energy was fired for demanding additional payments of $1.5 billion.

In a similar story to what is happening in the Expansion of the Panama Canal, where the construction consortium is demanding payment for overruns of $1.6 billion, the construction of the power plant for Jaguar Energy in Guatemala has stopped, because the Chinese company China Machine New Energy Corporation (CMNC) "threatened to suspend the progress of the project if JEG did not accept their claim for over $1.5 billion, which represents three times the value of the construction contract."

Guatemala: 300 MW Plant Halted Due to Business Dispute

January 2014

The construction of the Jaguar Energy power plant has been delayed by eight months because of severe conflict with the Chinese construction company.

Eight months after the agreed period for delivery of the project by the companies China Machine New Energy Corp. (CMNC) and Jaguar Energy Guatemala (Jaguar Energy), in charge of the construction of the power plant based on coal with a capacity of 300 MW in Escuintla, the work has bee halted.

Contract for Construction of Coal Plant Canceled

December 2013

Jaguar Energy Guatemala has decided to terminate the contract with the Chinese construction company responsible for the work for the generation of 300 Mw.

José Sarmiento, manager of JEG told Prensalibre.com that "the decision was made based on the same terms of the contract, and is the failure of the Chinese company to deliver the plant in operation in May 2013 and other arrears which have led to Energuate and its distributors (Deocsa and Deorsa) paying out $36 million to date. In total, the guarantees are $73 million."

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