CUC signed the over $800,000 contract with CISCO on May 14, 2006 for the repair of six engines at Lower Base plant.
The federal government funded the repair.
“The contract was essentially for the supply of mechanical engine parts and technical supervision to assist CUC in the refurbishment of the plant back to 10 megawatts of capacity,” Muna stated in a letter, adding there were clauses in the agreement pro-rating payment to CISCO in case less than 10 megawatt was produced.
The six engines of Power Plant 2 are designed to produce a 2.5-megawatt plate capacity, which is supposed to generate a total of 15 megawatts.
Most of the engines have been down for some time, “waiting for ordered parts/maintenance,” according to CUC.
Muna said the plant was rehabilitated to a capacity of 8 megawatts, adding that CISCO was paid based on its completed work, which was 80 percent of its contract price.
The July 17 power generation status report of CUC indicated that all of Power Plant 2’s engines were down.
According to Muna, “Warranty related issues” came up, but CUC was not able to relay the message to CISCO about the warranty clause.
Muna believes that CUC’s failure to inform CISCO about the warranty issues included in their contract was due to the turnover of administrative staff and non-renewal of employment of certain consultants who had been tasked with closing out the contract.
CUC-CISCO contract states: “Contractor shall undertake, within 12 months from the date the take-over certificate is signed for each engine…that is determined to be defective workmanship.”
A take-over certificate certifies that work has been completed and that no known problems exist with the engines.
Muna said CUC and CISCO have had several meetings, and that the contractor has inspected the engines in the plant for warranty related claims.
