By: Eng. Elmer Pinto Cáceres (Former Regional Councilor of Arequipa)
The second stage of the emblematic Majes Siguas project would be on the way to infeasibility, due to the abusive claims, expressed by Joaquín Roura, General Manager of the Cobra Concessionaire company, who would have argued “damages” before the Regional Government of Arequipa (GRA). for an amount of 120 million dollars.
The construction was handed over to the Angostura Sihuas company through a concession contract in the Public Private Association (PPP) modality in December 2010, for an amount of 424 million dollars and a period of 4 years of execution for completion.
More than 12 years have passed, 13 Addenda have been approved, the amount has increased to 550 million dollars in 2015 and then to 660 dollars in 2022, the GRA has made payments in excess of 125 million dollars as of June 2020 and there is only 20% progress.
MANAGEMENT MONITORING
Due to the aforementioned, product of a follow-up of more than four years during my management as regional counselor, I conclude:
1.- The company Cobra has not shown that it has the capacity or ability to develop the second stage of the Majes project. On the contrary, it has taken advantage of the goodwill of officials and politicians, in periods of start/end of management, to gain greater rights and additional benefits on the project. A clear example is the imposition of Addendum 13, approved under media pressure and blackmail, even above the 2021 Comptroller’s Report that does not accept the arguments of the Concessionaire company.
2.- Autodema, on behalf of the GRA, has not been able to carry out its counterpart efficiently to contribute to the correct execution of such an important project. This is because Autodema has not been able to form a technical-legal-financial team to carry out the necessary actions for the success of the project. A clear example is its failure to formalize the properties of Pusa Pusa, Tarucamarca and Tisco to comply with the delivery of the project.
3.- The concession contract option through the PPP model has degenerated into ineffectiveness and corruption among the officials of the parties. Currently, there are several projects trapped under this modality that does not allow the development of the country. Therefore, it is a “failed model”.
4.- It is opportune and healthy for the parties to recognize the unfeasibility of the project, which is why the process of “termination of the contract” considered within the clauses of the same must be initiated. In parallel, and without prejudice to starting the investigations that determine those responsible for the irregularities, form the technical-legal-financial team that is in charge of managing the project independently, under the current perspectives of the world agricultural sector and the international political context. .
There is confidence that the new management will promote a more effective work proposal to complete the construction of the second stage of the Majes project, that it will not be more of the same and that the four years of management will pass without results. The unity and articulated work of the Regional Council with the GRA, supported by a team of advisers, is necessary.
