Agreement on Dissolution of Chaparral Contract

The CEL and the construction company Astaldi have rescinded the contract for the dam construction by mutual agreement, with $108 million being paid to the Italian company.

Friday, July 6, 2012

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. "

The construction of the 65 MW dam,started in 2008 with an estimated investment of $219 million, of which $163 milion came from a loan from the BCIE.

"The El Chaparral hydroelectric dam on the river Torola, was scheduled to be ready in 2013, but the storm Agatha in 2010 caused damage to the work and from that date geological movements have been detected in the right margin. Astaldi said that for safety reasons, work was not carried out in the margin and it would be necessary to redesign the plans for the dam", reported La Prensa Grafica.

More on this topic

El Salvador Reaches $108.5 million Settlement with Astaldi

November 2013

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.

Palmerola Airport Concession Canceled

October 2014

The Honduran government has annulled the contract awarded in January to the company Saisa for the construction of the terminal and announced they will put it out to tender again.

The project will be conducted under conditions different from those previously established, for this reason the cancellation of the contract was confirmed and it was clarified that the company given the award, Servicios Aeroportuarios Integrados S.A.

Panama: Irrigation Project in Tonosí Canceled

January 2015

The government is negotiating with the company which won the award the cancellation of the contract for the construction of an irrigation system in Tonosí, because it has not yet acquired the land to do the work.

Despite having been awarded the contract in June 2012, the Ecuadorian company Hidalgo e Hidalgo, has not acquired the land, therefore the government is negotiating terms of a cancellation of the contract by mutual agreement.

Tocumen Cancels Contract for Moving Walkways

August 2013

Now new suppliers are being sought for the installation of moving walkways at the North Terminal of the International Airport.

South Korea's Hyundai is nine months behind on the installation of the moving sidewalks at the north terminal of Tocumen International Airport.

According to Juan Carlos Pino, general manager of the state run company, Hyundai's local representative, Elevadores del Istmo, "is not able to install the conveyor belts."

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