Termocentro: Who gets the commissions?

Duro Felguera, a Spanish company which specializes mainly in building turnkey combined cycle power generation plants worldwide, says it has been awarded a $2.1 billion turnkey contract to build a combined cycle gas-fueled thermal power generation plant in Miranda’s Tuy Valleys near Caracas.

Duro Felguera says the contract for the Termocentro power generation plant was awarded directly by Corpoelec subsidiary New Electricidad de Caracas (NEDC).

This is the largest turnkey power contract awarded in over ten years – certainly the biggest power generation project contract since Hugo Chavez was first elected president at the end of 1998

But there was NO competitive bidding, NO public disclosures or debate, and NO prior reviews of the proposed project by the appropriate authorities (i.e. National Assembly?)

Caracas Gringo called officials at NEDC, Corpoelec and the Energy Ministry, all of whom said “Sin comentarios.”

Who approved this turnkey contract, which is so large that the market price of Duro Felguera stock jumped over 10.5% to Euros 6.60 per share immediately after the management of the Oviedo-based company (in Asturias) notified Spain’s government of its extraordinary windfall?

Hint: Godgiven Hair.

And, a related question: Who gets most/all of the commissions in Venezuela for securing the contract for Duro Felguera?

Hint: Ditto.

A 1% commission – let’s call it a “finder’s fee” – would be $21 million.

But GH lost a fortune when Stanford International Bank collapsed. Not $276 million-plus as some have speculated, because that number was first floated on the Web back in 2004.

So, let’s assume a 5% commission or $105 million is going into GH’s account(s) worldwide (most likely, Switzerland, where it’s impossible to differentiate between bankers and international criminals).

Our guess: At least one of GH’s accounts is with Credit Suisse.

But a 5% commission is just the tip of the iceberg.

There are more millions of dollars to be made in the construction process.

As lead contractor, Duro Felguera will be hiring local companies to move earth, lay foundations, pour concrete, etc.

Expect huge cost overruns.

GH is currently the Minister of Public Works (aka Kickback Central), and without his approval/support there is no way that anyone at NEDC would have granted a contract of this extraordinary magnitude by themselves.

Even Energy Minister Rafael Ramirez doesn’t have the required political clout.

GH pushed quietly but very hard during his gig as Miranda state governor to get Termocentro approved, especially after EDC was nationalized (i.e. stolen) by President Chavez in first quarter 2008.

But as public works minister, it appears GH finally closed the deal.


About Caracas Gringo

Representing less than 0.00000000001515152% of the world population as of 31 December 2011.
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One Response to Termocentro: Who gets the commissions?

  1. askain says:

    La corrupción más allá de la corupción….que barbaridad!! y la pobre gente qué?


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