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Chavimochic III: A competition to start work will be launched in the third quarter of 2023, according to Midagri.

The project is currently estimated to require an investment of US$650 million. | Font: Andean

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The government will attempt to launch a competition for the Chavimochich III project’s Palo Rendondo dam in the third quarter of 2023, said Rural Development and Irrigation Minister Jenny Ocampo.

This decision Ministry of Agrarian Development and Irrigation (Midagri) This was announced after the decision on the Chavimochic II concession was made public, after the court indicated that it was a violation of both the state and the consortium consisting of Novonor (formerly Odebrecht) and Aenza (formerly Graña y Montero).

“[En la adenda que se venía trabajando] so that work can begin, we will talk about the third quarter of 2023. We have proposed a strategy for the Palo Redondo Dam that we can achieve in the same time frame in 2023 [lanzar al mercado] competitive offer,” commented the head of Midagry at the Congressional Agrarian Commission.

During his Congressional presentation, Ocampo also indicated that the rest of the project could be bid on the agreement. government to government (G2G).

“We came up with a strategy that could allow for something more flexible, perhaps G2G, a way that allows us to put a lot of [velocidad] to a symbolic work that has been waiting for completion for many years,” he commented.

It is worth mentioning that Project It has been paralyzed since 2016, and the works in Palo Redondo, corresponding to the first stage of the concession works, are already 70% completed.

It is currently estimated that in total the Chavimochic III requires an investment of US$650 million.

Termination of the contract will not entail costs for the state

The minister assured that the decision of the court would not entail costs for the state, despite the fact that the decision states that Peru the dealer will have to pay more than 25.3 million US dollars.

“While it is true that one part states that US$25 million must be canceled for works that have already been approved by the regional government itself, another paragraph also states that 10% must be put into effect. [de retención] that exists there, which is equivalent to the amount of 25 million US dollars. Therefore, there is no economic pay,” Ocampo said.

On the other hand, the head of Midagri added that the concessionaire asked the ministry to raise the issue of canceling the arbitration award.

“The concessionaire’s current requirement is that we can join the nullity. It doesn’t fit because they signed the contract themselves, which states that these are conditions. It was the concessionaire, made up of Odebrecht and Graña y Montero, who brought us before the arbitration court, he is the only one who had economic claims, and it was the arbitration court that determined that they were wrong,” he told Congress.

Ocampo added that after the ruling peruvian state may sue the concessionaire’s company for economic damage caused by the stoppage of work in Chavimochich.

Source: RPP

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