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Pacific Refinery: USD 537 million in complementary contracts
Posted On 24 Jan 2017
The signing of additional contracts was one of the reasons why the cost of the rehabilitation project of the Esmeraldas Refinery rose. After an investigation conducted by Daily El Comercio, it is evident that there are agreements that add up to 16 times more the value initially contracted. These are extensions and modifications of works and new services, whether due to unforeseen or technical reasons. Work orders and payment agreements were also signed. Of the USD1 348 million that were contracted in additional projects of the rehabilitation and maintenance phases, 40% correspond to complementary contracts, work orders, and agreements. This happened during the administration of former manager of Refining, Carlos Pareja Y. (today a fugitive).
These types of contracts were justified by the Public Contracting Law and are part of the paper trail that Pareja submitted in the trial against him for alleged bribery. Section 85 of this legislation allows contracting by contingencies or technical matters and without public tender, provided that they are duly “motivated, ” and the budget of the original contract is maintained. But if a work or service requires the creation of a new budget, Section 87 of the same law allows these contracts up to 35% of the updated value or readjustment of the main contract. But this percentage did not apply to consulting contracts and the hydrocarbon sector. Although, this exception is no longer included in the 2013 reform of this section.
Source: http://www.elcomercio.
