News reports indicate that the CDEEE has decided to allot the installation of 600 megawatts in the Monte Cristi area to tender runner-up Sichuan Machinery Equipment. The CDEEE originally had allotted the installation to Emirates Power. Radhames Segura, spokesman for CDEEE, announced that Emirates Power will only be in charge of installing the Azua 600 megawatt plant.
The decision comes due to Emirates not meeting their commitments. CDEEE had required the deposit of a US$20 million guarantee and that after 90 days if the contracting company had not started civilian works, they would lose US$10 million, with a subsequent penalty of another US$10 million if in 180 days the electromechanical works had not been begun. It is not clear if Emirates eventually made the deposit.
Sichuan Machinery had denounced that Emirates Power was a company that had been created for the securing of the Dominican contract, and had no track record in power plant installation.
The contracting of the power plants has been mired by accusations of irregularities and the warning that the country could be about to bring on another Cogentrix or Smith Enron deal.