Dominican Government to cancel Codacsa contract, finish Eastern Motorway

SANTO DOMINGO.- The Government will assume the works to conclude the Eastern Motorway once Congress terminates the contract with Codacsa, the company hired to build the road in 2001, said Public Works minister Victor Diaz Rúa Tuesday.

The official, after meeting with Senate Public Works Commission president Euclides Sanchez, said it’s not necessary to seek new tenders for the work.

Diaz said Codacsa, which has already taken the case to the International Arbitration Court in Paris, alleging breach of contract, has spent only the taxpayers’ money in the project.

He revealed that RD$1.6 billion have been spent in the project, and that the company has failed to meet the contract’s terms when it failed to materialize its pledged investment.

“The company doesn’t want that contract terminated because they have the best deal in the world, the decision to cancel is now in the hands of the senators and deputies,” Diaz said, adding that the contract signed in 2001 doesn’t correspond with the terms of the bidding Codacsa won in 1998.

For his part, Sanchez deplored that the company hasn’t reponded to the Senate’s invitation to defend their position. "They, in a discourteous manner didn’t attend the invitation, we already met with Public Works and once we receive the documents we’ll render a report to the Senate’s plenary session."


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