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Bichara says sentence does not stop construction of plants

He points out the project's budget will be distributed in yearly disbursements

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Bichara says sentence does not stop construction of plants
SANTO DOMINGO. The construction of the Punta Catalina Thermoelectric Plant, composed of two coal-fired generating plants, will continue going forward in spite of the suspension of the process of the international public tender for this project ordered last Wednesday by the Superior Administrative Tribunal (TSA).

This was affirmed by the executive Vice President of the Dominican Corporation of State owned Electricity Enterprises (CDEEE) in statements made yesterday during a press conference. "The decision is not for the project, it only refers to the tender process," he said.

He called the position of the TSA regarding the inconsistencies in the approved the value approved by the General Budget Law and the cost of the project, nonsense. The budget assigned a maximum amount of US $1.5 billion while the tender provided for an amount of US $2.4 billion.

Bichara explain that last year they assigned this project a disbursement of US $150 million, and of this amount they used US $100 million. All the while that this year they set aside US $200 million of which they have disbursed US $150 million.

"A project of US $1.94 5 billion cannot be dispersed in a year, or in the budget of a year. It would punish the eye locations of the other institutions too, and because of this it is distributed over several years and the money is taken out slowly," he noted.

He pointed out that the contract that awards the construction of the thermoelectric plant to the consortium made up of the companies such as Norberto Odebrecht, Tecnimont, and

Estrella Engineering, specifies that the participation of the state is for some US $400 million.

"This is an assertion which lacks information or makes no sense with respect to the project," he said referring to the court's decision.

He assured the reporters in addition, that the main office of the Gezhouba Group Company Limited, which according to the sentence was the entity that presented the injunction against the tender process, removed itself from any judicial process of the tender process through a letter, shown to reporters and dated last 6 January.

The letter, addressed to the Office of Commercial Development of the Popular Republic of China, consists of just one paragraph whose translation - according to a copy that was attached - in which it is noted: "Our company, Gezhouba Group Company Limited, in relation to the tender of the energy products of 2 x 300 MW, has not authorized anyone to present an accusation."

"Those who feel out of place are those who boycotted this project," he told reporters.

Regarding the accusations of environmental damage, Bichara said that these electricity generation plants are less contaminating than those that are currently operating in the country.

The defense of transparency

Reinaldo Pared Perez and other PLD senators yesterday defended the transparency of the public tender which was held for the construction of a hydroelectric generating plant and questioned the decision of the TSA. Pared Perez said that it seems suspicious because he can't find any explanation that this is happened at any time. In the meantime Heinz Vieluf, the Senator for Monte Christi, said that there are interest that don't want the state to take part in the electricity business. At the same time deputy Nelson Arroyo who will be the spokesman for the Majority Revolutionary Party (PRM) said that there are a lot of questions regarding this public tender which should be cleared up.