US investors have shown strong interest in purchasing the 752 MW Punta Catalina coal-fired power central under construction in southern Peravia province, as reported in El Dia. The newspaper speculates this could be why US Ambassador Robin Bernstein was present at the signing of the coal supply agreement for the test period of the power plant by US company, XCoal Energy & Resources.
As reported, three offers have been made, one of which would call for the purchase of 80% ownership for US$2 billion. Spokespeople for the power plant, nevertheless, told El Dia reporters that the priority is to finish the power plant so that it can enter into operation as programmed next year.
As reported, the power plant on record has cost US$2.1 billion of which US$1.23 billion came from government revenues, US$291 million was borrowed from the SACE European bank, US$595 million was financed with sovereign bonds. The government has also committed to advance US$336 million to Odebrecht-Technimont to finish the project, pending the results of arbitration in a New York court.
Initially, the government contracted the plant for US$1.94 billion, but had to incur in additional costs when the BNDES funding offered by the Brazilian government collapsed after the Odebrecht global bribes scandal.
El Dia article speculates that the price would not be enough to cover the total costs incurred by the Dominican government to build the power plant.
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El Dia
22 October 2018
