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The unjustified addendums to Odebrecht-DR contracts

Of 14 projects undertaken by Brazilian construction company Odebrecht in the past 16 years, at least 10 were found to have had significant modifications made to their budgets, costing Dominican tax payers US$830 million more than the original budgets.

There is the case of the Northwest Aqueduct, under the Hipolito Mejia administration, that was originally budgeted US$220 million, but ended up costing US$251.5 million, for a difference of 14%. There is also the Palomino Hydroelectric project with an estimated budget for US$225 million that by the time it was inaugurated came with a whopping US$400 million price tag.

In addition, the cost of the Pinalito Hydroelectric dam was initially set at US$131 million, but ended up with a total cost of US$300 million, or 129% the initial amount.

The Ecovías de Santiago road project contracted to Odebrecht that included the construction of the Santiago Bypass was planned for US$49 million but is known to have cost more than US$138 million, or 181% more.

The Samana aqueduct was originally budgeted at US$60 million, but ended up costing US$175 million. Similarly, the Hermanas Mirabal aqueduct started at a budget of US$51 million, but in reality cost US$110 million.

The Procurement Law 340-06 establishes an allowed for 25% increase in budget costs, explains Carlos Pimentel of the civic group Participación Ciudadana.

Source: DR1, Acento

Mar 18, 2017

Category: DR News |

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Last updated June 24, 2017 at 11:34 PM
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