Lebanon Businessnews News

Butec contests decision to redo Deir Amar tender
Chairman: We aim to retain investors’ confidence
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The Cabinet agreed to repeat the tender to build a new power production unit at the Deir Amar facility during its session on December 19. This second tender will be open to all interested companies.

The tender was initially won by Abener-Butec, a Spanish-Lebanese consortium. “We consider this decision illegal and we will seek legal action to terminate it,” said Nizar Younes, chairman of Butec. The decision to redo the tender was the final resort after talks failed between the Ministry of Energy and Water (MoEW) and the Spanish firm, Abener. The Spanish Embassy refused to comment on the Cabinet’s decision.

According to Younes, Butec is not seeking financial compensation out of its planned lawsuit. “Our goal at the moment is to defend Lebanon’s image abroad and retain the confidence of foreign and Lebanese investors in this country through proving that a sound judiciary still exists,” he said.

The Cabinet said Abener-Butec was the preliminary winner of the tender and that no commitments had been made to it. Public tenders require the Cabinet’s endorsement of the results before they become effective.

Negotiations between Abener-Butec and the MoEW had been focused on reducing the price of the deal. Abener-Butec had offered to build a 535 MW plant for $660 million. The MoEW asked to downsize the cost to $500 million.
Reported by Hanadi Chami
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Date Posted: Dec 20, 2012