The Punta Catalina Coal Thermal Power Plant is made up of two coal-fired units, each having a capacity of 376MW
The Dominican government has reached an agreement with the Odebrecht-Tecnimont-Estrella Consortium to settle disputes over the 752MW Central Termoeléctrica Punta Catalina Project (Punta Catalina Coal Thermal Power Plant or CTPC) in the Dominican Republic.
The parties have agreed to resolve all the existing disputes and guarantee the completion and final delivery of the coal-fired power plant in the Peravia province.
According to the government, the amount claimed by the consortium as additional payment for the plant’s construction has been reduced from $973.2m to $395.5m. This was achieved by the government through the Corporación Dominicana de Empresas Eléctricas Estatales (CDEEE) within the framework of the International ADR Center of the International Chamber of Commerce (ICC).
The government said that the final settlement of all the existing disputes so far was reached following a negotiation process between the parties, which began as soon as their respective claims and positions were formulated in July 2017.
The settlement was made in an international mediation in New York City, in compliance with the Mediation Rules of the ICC following several sessions held since the start of this year.
Of the amount agreed upon to settle the disputes pertaining to the Punta Catalina Coal Thermal Power Plant, the government will only have to pay $59.5m. This is due to the $336m contingent fund, which will be credited finally towards payment of the total amount agreed upon.
The contingent fund was set up originally in June 2018 to ensure the continuation of the works at the Punta Catalina Coal Thermal Power Plant.
The Dominican government stated: “Payment of the US $59.5 million will be made gradually and to the extent the Consortium completes, within certain deadlines, the remaining works to which such payment has been subject to, including successful completion of the tests necessary to bring CTPC’s Unit 2 into final operation.”
Brief details of the Punta Catalina Coal Thermal Power Plant
The Punta Catalina Coal Thermal Power Plant is the largest power generation facility in Dominican Republic. The power plant is made up of two coal-fired units, each having a capacity of 376MW with its turbines and generators supplied by General Electric.