Cabinet spikes power generation deal
A $151.4 MILLION power generation contract inked by former President Ricardo Martinelli a month before he left office has been cancelled.
The Cabinet Council made the decision on Tuesday, June 23 cancelled the $151.4 million contract that signed a month before the end of his government with the company AES Panama for.
The early termination of the agreement was done at the request of Egesa, the company that signed the contract on behalf of the state.
The five-year agreement went into effect in January, and to date the company had been paid $13 million, which was expected to rise to $60 million by the end of the year. The power plant is located on a barge near the Bahia Las Minas substation.
The plant cost $70 million.
Now that the contract has been cancelled, the state must begin an evaluation process to determine compensation to the company reports La Prensa