Samaná port’s concession contract raised from US$10M to US$100M

SANTO DOMINGO.- The Dominican Government raised from 10 to 100 million dollars the concession contract for Samaná’s Arroyo Barril (Duarte) port, signed with the company Valley Forge Corporation for the project’s construction, newspaper Diario Libre reports.

The addendum 023/2008 modified the contract that dates from 2001 and has a 30-year period, was signed about three months between the Dominican Port Authority (Apordom), in name of the Dominican State and executives of the company.

It stipulates that the signature is also for the construction of the Pirate port, the extension and new construction of Arroyo Barril’s current footer, a passenger terminal, offices, preparation of the area, and the construction of a second pier next to the present one.

According to Apordom legal consultant Carlos Marmolejos, the variation was done at the investors’ request, who changed their tender of 100 million dollars, 90 million more than the commitment assumed in 2001.

The new signature was done, just like the original contract, without the Congressional approval and without calling for tender offers.


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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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