The Senate of the Republic this Wednesday approved addendum 4 to the Contract Agreement for the Multiple Project of Montegrande Dam and Rehabilitation and Complementation of the Sabana Yegua Dam, dated July 20, 2009, which brings the original contract to the sum of US$442,807,467.39.
The contract was signed on July 20, 2009 between the Condition Dominican Republic, through the National Institute of Hydraulic Resources (INDRHI), with the commercial company Consorcio Montegrande SA made up of the companies Constructora Andrade Gutiérrez and Servicios de Ingeniería SA
In his letter, deposited in the Senate on October 18, 2021, President Luis Abinader explains that the objective of the addendum is to extend the term of the aforementioned contract until December 31, 2022, increase the amount of the contract by US$41,108,388.00, so that the new amount of the contract is US$442,807,467.39 and complete the advance corresponding to 20% of the estimated amount, value that corresponds to the sum of US$17,704,895.80.
Among the aspects of the initiative, it is worth mentioning the modification of the fifth article of the contract regarding the penalties for delay, establishing that if the contractor fails to complete all the required works, must pay INDRHI 0.05% of the amount of the contract corresponding to phase III for each calendar day that the works remain unfinished after the completion period has expired.
It also establishes that if the contractor manages to anticipate the delivery date of the Montegrande Dam, the INDRHI must pay the contractor as a bonus 0.05% of the amount of the contract corresponding to phase III for each calendar day that the works are anticipated before the completion period expires.
Similarly, the parties waive the right to verify and penalize imputability in events exclusively related to the delay of the completion period of the works until the date of addendum 4.
Paragraph e indicates the immediate start of work to prepare the next contractual addendum with the interest of guaranteeing the continuity of the scope of the original contract.
The Montegrande Consortium also undertakes to deliver to the National Institute of Hydraulic Resources (INDRHI), within a period not exceeding 120 days after the signing of addendum no. 4, the basic designs referring to the right and left banks of the Yaque del Sur River, necessary to conclude phase II.
In the session Yesterday, the senators left addendum number 5 to this contract on the table, after the senator for the Barahona province, José del Castillo Saviñón, asked for explanations regarding the construction of canals and other works of the Montegrande dam.
The president of the Senate, Eduardo Estrella, called a session for next Tuesday and announced that the director of INDRHI, Olmedo Caba Romano, was invited to offer details about the aforementioned work.
