Cruz said DCM Group Inc. is “behind schedule” which is “a clear indication that this rehabilitation and repair contract is a complete failure, leading towards a complete meltdown of our power plant.”
He added that as a hired contractor, DCM and EEI Corp. & Partnership are in “violation and breach” of the contract that they signed with CUC in Dec. 2007.
According to Cruz, Man Diesel, another contractor, has also not accomplished any substantial work on the power plant engines due to unavailable parts and materials.
Cruz noted the penalty clause in the contract between the two parties.
“We…believe that there is penalty to imposed on the contractor for every megawatt not produced,” Cruz said.
As of June 5, CUC’s power generation status was 18megawatts only because only three engines were operational —engines #2, 3, and 8.
CUC Executive Director Antonio S. Muna, in a letter to Cruz, admitted that DCM has yet to complete the repairs and overhaul of seven of the eight engines in Power Plant 1.
However, he added, “although, the contract was signed in Dec. 2007, DCM did not get on the ground until Feb. 2008.”
“Engine 7 is the current focus of DCM, ” the CUC chief said.
Muna said parts reserved for engine #1 were channeled by CUC to engine #3 for emergency repairs.
“Currently, Man Diesel has suspended work on Engine 1 until needed parts arrive to replace those used in Engine 3,” he said.
Muna said parts needed for the power plant engine repairs are not readily available off the shelf since some parts are manufactured upon order only.
