The state run power company of Costa Rica has dissolved its contract with Hidrotárcoles SA, which was selected in 2012 to build a dam in the province of Alajuela, under the turnkey scheme.
Instituto Costarricense de Electricidad argued that the dissolution of the contract was due to missed deadlines specified in the contract. "...The agreement signed under the BOT method (build, operate and transfer) in April 2012, was made through the international competitive tender for purchase of blocks of hydroelectric power of up to 50 MW. "
The company that won the tender to build a 14 Mw photovoltaic plant has withdrawn from the project, meaning that it will be put out to tender again.
The Autonomous Executive Commission of the Lempa River (CEL) argues that Juwi, the company that initially won the contract to develop the project, wanted to make changes to the contract, arguing that the document did not contain "satisfactory conditions".
As compensation for having suspended an electricity supply contract using a floating thermoelectric generation plant, the government will pay AES Panama up to $20 million.
The contract was canceled at the request of the Varela government, which pointed to the high costs of supplying electricity. Now, after negotiating with the company AES Panama SA, the government has agreed to pay up to $20 million for ending the contractual relationship early.
The State Power Generation Company (Empresa de Generación Eléctrica) has cancelled the contract with AES Panama to supply thermal energy, indicating the excessively high cost of supplying electricity.
The early termination of the contract comes just three months after the company AES Panama began the tests to begin connecting the barge's electrical system .At the request of Egesa, the Varela administration approved the cancellation of the contract, invoking Article 73 of the Public Procurement Law 22, which allows "... the unilateral termination of contract in the public interest."
Nearly seven years after the work was awarded, the contract with the Guatemalan CECHSA for the construction of a 150 MW coal plant in Honduras has been cancelled.
After several years of problems obtaining financing without making any progress in the work, Empresa Nacional de Energía Eléctrica de Honduras has decided to formally terminate the contract with the Comercializadora de Electricidad de Centroamérica de Honduras S.A, to whom it had awarded the work directly during the administration of Manuel Zelaya.
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."
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 new model contract submitted by the National Authority of Public Services of Panama includes a unilateral termination clause.
Reasons of "public interest" could be invoked by the Panamanian government to unilaterally terminate a concession contract for the distribution and sale of electricity.
Should the state seek reasons of "public interest", the concession contract for the distribution and sale of electricity to be signed this year with operators could be rescinded, according to the model contract submitted by the Public Services Authority (ASEP).
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. "