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ICE Puts the Brakes On Vital
Thermal Project
The project known as Térmico
Garabito, one of the most
ambitious projects by the
Instituto Costarricense de
Electricidad (ICE) has come to
halt following a lack of a
decision by the Constitutional
Court. The planned Garabito
project would have averted
rationing of electrical power
that is foreseen by ICE in 2007,
as demand for the fluid is ever
increasing.
The project has come to a halt
because the Constitutional Court
or Sala IV has yet to render a
decision on an appeal by the
Abengoa-Aberner company that had
its contract rescinded in 2004.
ICE's board of directors had to
put the brakes on the purchase
of equipment for the plant from
the Spanish company, which halts
the project for now.
Abengoa-Aberner had its contract
for the project annulled when it
was discovered that they had
issued a cheque for us$100.000
to former president Miguel Angel
Rodríguez, who is being accused
of taking payoffs, among others,
in the ALCATEL-ICE scandal over
a contract for GSM cellular
lines.
Rodríguez spend some time in
preventive detention (jail),
then moved to house arrest and
now is on bail waiting trail.
Abengoa-Aberner appealed ICE's
decision and that of the l
Consejo Nacional de
Financiamiento Interno, Externo
y de Inversión (Conafin),
arguing that the company would
suffer financial losses with the
cancellation.
Following the cancellation of
the contract with the Spaniards,
ICE gave out the us$112 million
dollar (us$50 million less)
contract to HItachi, a Japanese
company. In June of 2005, the
Banco Central de Costa Rica (BCCR)
gave the green light to the
deal, that would have enabled
the purchase of equipment for
the thermal plant located in
Montes de Oro, Puntarenas.
ICE says that the plant is
important to avoid black outs
and rationing next year.
Demand for electrical energy has
been rising at a rate of 5.5%
per year while production
capacity has been stagnate.
Garabito, once built, will have
the capacity to produce between
120 and 190 megawatts using
steam and fossil fuels. The
plant would between December and
May, the dry season.
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