Previous Story
Surcharges reached 1.156% in emblematic works in Ecuador, according to three foreign auditing companies
Posted On 08 Jan 2019
The results of the three international companies ICC-Tecnatom (Spain), RPS Energy Ltd. (United Kingdom) and ABSG Consulting Inc. (United States), which audited the five flagship projects of the Rafael Correa government, suggest that there were overprices, unjustified contracts and poor oversight.
Through a video, illustrative photos, a detailed Power Point exhibition, yesterday the hydrocarbon authorities and the deputy resident representative of the United Nations Development Program (UNDP) Ecuador, Nuno Queirós, presented the technical details of said exams
But in addition, the results show how much money the government will have to give so that the mega projects can work in adequate conditions.
“The evaluating companies (recommend) corrective budgets not less than $ 650 million in total. That is a figure that could be conservative. “
Pablo Flores, manager of Petroecuador
The Minister of Energy, Carlos Pérez García, confirmed that the extra figure that the Government must pay reaches about $ 650 million.
In the Esmeraldas Refinery, premium prices reached 1,156% compared to the market price (electricity system).
In the Pascuales Cuenca pipeline, the terminal has collapsed slopes and its cost, which tripled, made it financially unfeasible.
In contrast, the Liquefacción plant in Bajo Alto and the LPG storage plant in Monteverde land are oversized projects. If Bajo Alto were to operate at 100%, there would be no natural gas to fill it with, since there are not enough reserves in the Amistad Field, the minister said yesterday.
In Monteverde a longer spring was built and with a draft greater than necessary. The Pacific Refinery is a simple flat land.
According to the manager of EP Petroecuador, Pablo Flores, there is a common thread in the failures of the projects. This is “a nefarious management model that was applied systematically in all projects”.
“Our cooperation has been framed within the mandate to promote efficiency and transparency of institutions and sustainable management of natural resources.”
Nuno Queirós, representative of UNDP in Ecuador
Thus the cost of the works had a drastic increase in all cases: there was an increase in works and unjustified contracts, in addition the contracts were given to finger by the figure of special regime. There were also errors in construction in which the audit played a very poor role.
As for the Pacific Refinery, one of the most expensive works but showing no infrastructure, the report reveals that the vision of the partners was different from the beginning.
Venezuelan oil company PDVSA wanted to achieve a market for its oil, and Petroecuador sought to eliminate the import of fuels.
The audit advises that an in-depth analysis of the project be carried out before proceeding or continuing with the project.
43 companies searched for tender
Nuno Queirós, representative of UNDP in Ecuador, reported that there were 43 companies interested in carrying out the audits. An International Committee evaluated the proposals. The total cost of the five projects was $ 3.3 million. Each company had between 60 and 90 days to perform the evaluation and present the report. It was checked if the projects complied with terms of reference and financial technical standards. (I)
