SANTO DOMINGO.- Three large Brazilian companies have become the teacher’s pets of the last two Administrations, since without much sacrifice have been contracted for some of the country’s major works or equipment purchases in the last 10 years, without tenders or under questioned bidding.

The amounts in roads and hydroelectric dams surpass US$1.5 billion (around RD$54 billion) granted to the Brazilian giants Norberto Odebrecht and Andrade-Gutierrez, whereas the amount to be paid to the plane manufacturer Embraer for 10 Super Tucano intercept fighters has yet to be disclosed.

The funds are loans from Brazilian investment banks, which in most cases have clauses which force the country to buy raw materials from that nation. In several occasions the materials are invoiced at prices much higher than in the local market, which also skyrockets the final cost.

Norberto Odebrecht and Andrade-Gutierrez began to build major works in the country in 1999, when Fernandez’s Administration began contracting to build the Northwest Line Aqueduct, a project the latter built at a cost of US$161 million.

Shortly after the work was assigned the company ARCISA, which made a tender offer, denounced that it was awarded to the Brazilian company, although its offer cost 37 million dollars more.

The aqueduct was inaugurated by Hipólito Mejía, but its expansion was contracted almost immediately with Odebrecht, for US$81 million.

That company has been fortunate because even after it was contracted to build the Samaná Aqueduct for US$50 million and National Water Potable Institute (INAPA) director Mariano German ordered the operations suspended under the “suspicion” that many invoices were also overvalued, the work continued and Congress approved the loan.

Its good fortune continued with the construction of the Pinalito dam, because from an initial cost of US$131 million, in the end it was US$337 million, a 160 percent jump. Fernandez inaugurated it with much pomp and circumstance just three months ago, but yesterday its output was barely 25 megawatts, half of its contracted capacity of 50 megawatts.

Odebrecht was also contracted to build the Palomino hydroelectric dam, with capacity for 98 megawatts, at a cost of US$225 million.

Duarte Corridor

Odebrecht’s luck doesn’t end there. The road works “Duarte Corridor,” one of the country’s most important and expensive public works projects ever, were awarded to that company, with an initial cost estimated at US$163 million, though considering its recent history nobody can assure that the final cost won’t be much higher.

In all cases the works have required foreign financing.

Super Tucanos

In addition to infrastructure works, the Dominican Government has made other deals with Brazilian companies, including the purchase of the Super Tucano airplanes at an initial cost of US$98 million.

Yesterday the Presidency’s Ethics Commission president Marino Vinicio Castillo revealed that Hydraulic Resources Institute (INDRHI) director Hector Rodriguez Pimentel refused to notify the agency’s Governing Board on the tender for the Monte Grande dam, even after its members requested it, what he considered one of the “serious” elements in that operation.

SOURCE: eldia.com.do