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The CEL and the construction company Astaldi have rescinded the contract for the dam construction by mutual agreement, with $108 million being paid to the Italian company.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

$111 Million To Finance Chaparral Dam

January 2013

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.

Dam Construction Reactivated in El Chaparral

May 2011

The talks to resume work have restarted, the cost is estimated at $19 million.

The dam construction project in the north of San Miguel, El Salvador, could soon see the light soon, after delays lasting more than a year.

The effects of hurricane Agatha and some restrictions in the contract between the Italian construction company Astaldi and the Executive Hydroelectric Commission of Rio Lempa are some of the reasons behind the delays in works.

Two Additional Years to Redesign El Chaparral

June 2011

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.

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.

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