The contract was signed on Dec. 12, 2007.
Cruz said DCM should pay CUC for every engine at Power Plant 1 that is not completely functioning.
According to the contract for parts and services, DCM agreed to settle “non-performance payment charges” with CUC in the event of the engines not functioning below their expected capacity after the completion of Phases A and B of the rehabilitation project.
Phase A includes repair and overhaul of engines #2, 3, 5, 6, and 7, while Phase B covers engines #1 and 8.
Phase A was scheduled to be completed after 90 days, while Phase B was supposed to be finished after 120 days.
CUC Executive Director Antonio S. Muna earlier said that the repair and overhaul efforts had been delayed as DCM was still waiting for the delivery of ordered parts.
Muna said CUC expects to bring back online engine #1 on July 31, and engine #7 on July 15.
After the repair of these two engines, he added, CUC can repair two other engines.
In an earlier interview, he said the rehabilitation project is a combined effort of several contractors, not just DCM.
A contractor needs to wait for another contractor to finish working on certain engine parts before it can move in and conduct its own work, Muna said.
“Most of the problems in the engines are known only when they are dismantled and inspected since all of the units…have exceeded their maintenance schedule,” he added.
The other contractors hired by CUC are Mitsubishi Corp., SAI Traders, CBM Tech. Pty. Ltd., South Pacific Eng. Pty. Ltd., Mitsubishi Heavy Industries Ltd., IMSE BUBA, CISCO, Dowding and Mills, MAN Diesel, and a few other companies.
Under its contract, DCM has to pay $91.03 for each engine that does not meet its kilowatt-hour capacity. These are engines #1, 2 and 3.
DCM is also required to pay $66.68 each for engines #5, 6, 7, and 8 for every kilowatt of capacity not achieved.
Engine #4 is not included in DCM scope of work.
“Alternately, CUC may apply non-performance payment charges of average $78.86 per kilowatt of capacity not achieved, on completion of the phase A and/or phase B,” the contract stated.
Cruz noted that no amount of money was indicated in CUC’s quotation for the general overhaul of engine #1.
CUC is asking the federal government to provide $3.8 million in additional funds so that the agency can pay a portion of the total amount of DCM’s contract.
CUC earlier received $6.5 million in federal funds for the rehabilitation of its engines.
Muna said CUC has already spent about $4.7 million of this amount.
Variety was unable to contact DCM’s project manager for comment.
