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.
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 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). "
Due to project delays Salvadoran regulators are examining the possibility to extend the original deadline for the opening of the hydro power plant.
Hydroelectric Executive Commission of Río Lempa (CEL), the concessionaire of the project, said the dam would begin production January 2015 and not January 2014 as originally planned.
"The delay of a year is due to damages caused by Tropical Storm Agatha in May 2010 when the dam site was flooded", reported Laprensagrafica.com. According to Astaldi, contracted by CEL for the project, since that date, geological instability has been detected on the right side of the dam.
The problems detected could lead Cel and the Astaldi consortium, responsible for the project, to submit for international arbitration.
The faults which threaten the foundations of the dam were detected after Storm Agatha, halting all works at the site.
The Executive Committee of the Lempa River Hydroelectric Plant (Cel) and the Italian consortium Astaldi, before heading for arbitration, hired an international expert to determine who has the responsibility to cover the additional costs of a possible plant redesign.
In El Salvador, tropical storm Agatha has caused floods which forced the contractor to temporary suspend the construction of this hydroelectric power plant.
The storm caused a flood in the working area close to the river, were the builder was reading a cement structure.
“Most of the work in 2010 was to be focused in this area. This suspension will push back the project, initially conceived for 50 months.
17 months after starting construction, hydroelectric power plant “El Chaparral”, located in San Miguel, is 22% ready.
The Hydroelectric Commission for the Lempa River (known as CEL) estimates that the reservoir will begin to be filled on May 2012 and should reach it maximum level in 2013.
700 people are currently working in the $219 million project, using shifts to work 24 hours a day.
President Mauricio Funes stated that proposed Hydroelectric Power Plant "El Cimarrón" will not be built under its current design.
Funes explained that if the plant was to be built using the current design, it would cause negative environmental and social effects.
The executive has requested the project to be redesigned, with Funes stating: "'we will decide if we move on with the project based only on the new design ...
The president of CEL announced that the project is going according to schedule, and will be ready in January 2013.
Nicolás Salume, president of the Executive Hydroelectric Commission of the Lempa River (CEL), added that January 3rd, 2013, is the deadline for the builder to deliver the project.
Local newspaper "La Prensa Gráfica" publishes: "[Canceling the dam would cost $500 million and the entire project $330 million] remarked Salume, when saying that if the project is suspended, Italian builder ASTALDI SpA, in charge of the project, would begin an arbitration process against the country for contract non-compliance, with far more expensive consequences".