Focus – In defense of Punta Catalina

The Thermoelectric Power Plant of Punta Catalina (CTPC) is the main source of electricity for the Dominicans. The two units, with a total capacity of 752 MW, can supply between 30% and 35% of the National Interconnected Electric System (SENI) demand at very competitive prices. On August 18, 2020, I delivered both units operating at maximum load and with the equipment in excellent condition, resulting in an availability rate higher than 92%, which is higher than the international average for this type of power plant.

Unfortunately, President Luis Abinader made a serious mistake in appointing Antonio Almonte as head of the electricity sector, as he belongs to a group whose goal is to sell this valuable asset of the Dominican people for the price of a dead cow and thus wealth. to destroy. of all Dominicans. To achieve this goal, a destruction squad has been formed in Punta Catalina, led by Almonte, who are committed to taking steps to reduce its revenue-generating capacity and increase that company’s risk level. Given his track record, this won’t be the first time he’s defending interests against the CDEEE and the nation. The PRM has more skilled and experienced human resources than Mr. Almonte to lead the Department of Energy and Mines and to run Punta Catalina.

In a recent article published in Listín Diario, Almonte again lies about the power of Punta Catalina. Despite the fact that the renowned American multinational company Babcock & Wilcox, manufacturer of the boiler, clarified in a letter dated February 12, 2021 that, based on the results of the performance tests conducted by McHale & Associates, its equipment can generate enough steam that GE- Turbo generators producing 376 MW gross, Almonte continues to claim that each unit has less power than the actual one. The intent of this misconception is to destroy the value of Punta Catalina by reducing operating capacity, which benefits the inefficient private producers who extract additional rents as the energy price in the spot market is higher. This position is detrimental to the interests of the population and the Dominican government as technical evaluations indicate that, in terms of net megawatts, the amount of energy sold to SENI can produce unit 1 345,586 net MW and unit 2 347,677 net MW, figures that exceed the level guaranteed by the EPC contract, namely 337.39 net MW. Those results have been verified by the American companies Stanley Consultants and Clean Air.

Almonte acknowledged in his article that he had fired the principal Punta Catalina technicians trained by the Odebrecht-Tecnimont-Estrella Consortium and the equipment manufacturers (Babcock & Wilcox, General Electric and Hamon Corporation). Rather than hiring career and maintenance personnel, with experience in electrical generation installations, it has placed assembly personnel and technicians with more than 20 years outside the production area and without knowledge of the technology that was installed in Punta Catalina, whose merit is to be members or sympathizers of the PRM. Due to the dismissal of the person responsible for the operation of the air quality control system (AQCS), I can predict that there will be a deterioration of that system in the coming months due to lack of maintenance and proper functioning.

In his article, Antonio Almonte also pointed out that “Jaime Aristy Escuder and Rubén Bichara agreed in an Anthology Agreement to pay Odebrecht an additional $ 11 million, based on the aforementioned Annex T.” That statement is completely false.

A simple analysis of the documentation cited by Almonte shows that he is affected by one of these options: a) a serious lack of reading comprehension; b) pathological addiction to lying; c) advanced chronic perversion syndrome; d) all of the above.

Appendix T of the EPC contract, signed on April 14, 2014, which governs the relationship between the CDEEE and the Punta Catalina Construction Consortium, presents the penalties and compensation for failing to pass the acceptance or performance tests of that installation. . In the case of net power, it is indicated that for every MW lower power achieved in relation to the guaranteed value offered by the Construction Consortium (ie 337.39 MW), a fine of two million dollars will be imposed.

Mr Almonte interprets the contents of Annex T, or deliberately misrepresents it, by stating that the CDEEE should pay him $ 1 million for every additional MW the plant’s units can produce and therefore concludes Jaime la boiler has 376 gross MW and 347 net MW, so the CDEEE had to pay Odebrecht more than ten million more. “That statement is completely wrong, false and malicious. The CDEEE did not need and pay a cent more to the construction consortium because it had reached a net worth higher than the level guaranteed by the contract. This shows that Almonte is lying and slandering by saying that the CDEEE has paid an additional $ 11 million to Odebrecht or the consortium, based on Exhibit T of the EPC contract.

Despite having all the information to hand, Almonte fails to describe the following as I left it in a comprehensive final report that I handed over to the new Punta Catalina administration.

On December 19, 2019, the CDEEE and the Consortium agreed to submit their discussions on the existing disputes arising from claims submitted by the Consortium in 2017 to a mediation process under the International ADR Center. Chamber of Commerce (ICC) in New York, as made possible by the EPC agreement for the parties. Through this mediation process, it was possible to reduce the amount of the dispute from $ 973.2 million to $ 395.5 million, of which the government only had to pay $ 59.5 million, as it had to pay $ 336 million through the Contingent Fund. dollars.

On January 20, 2020, the terms and conditions sheet for the dispute resolution agreement was signed in New York, setting out how that amount would be paid to ensure completion and start-up of the unit. section 9 of that magazine described ten payment triggers, the total amounts of which reached $ 59.5 million. These events include: Unit 2 synchronization; the operation of the unit at a power equal to or greater than 200 MW for two hours and two mills; and operation of the unit at power equal to or greater than 376 MW for two hours and three mills; among other things. This latest event has been assigned a $ 11 million payment, which is deliberately confused by Mr. Almonte with what is laid down in Schedule T of the EPC contract, which refers to fines and compensation and not to bonuses, prizes or additional benefits for the consortium. .

The January 20, 2020 agreement cited by Almonte was signed in New York and is part of the process of discussing the existing disputes between the CDEEE and the consortium, concluded in March 2020. In a letter from Babcock & Wilcox revealing their lie, the resolution of that dispute was an event published in the international and local press, highlighting that from then on the Dominican government would benefit from all electricity generation from both Punta Catalina units. This was critical for the Dominican people to have continuous electricity during the period of incarceration imposed by the authorities to moderate the spread of the Covid-19 pandemic.

To end this exchange of views, I propose to President Abinader that Mr Almonte, his Minister of Energy and Mines, authorize a two-hour debate, which will be televised across the country. broadcast and that will certainly be integrated by different television channels. television so that the nation can find out who is lying and who is telling the truth about the Dominican people’s most valuable electrical asset.

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