US$2 bln petrochemical plant contract with European firms terminated in Bolivia amid corruption scandal

30-Jun-17

ESPAÑOLA corruption scandal in Bolivia had led President Evo Morales to cancel two petrochemical plant contracts with two European companies, as per panampost.com.

The contract was cancelled after a complaint by Senator Oscar Ortiz, who accused the president and contract proceedings of corruption. As a result, Guillermo Acha -President of the country’s state owned oil company Yacimientos Petroliferos Fiscales Bolivianos — was dismissed. A contract to purchase drilling equipment for US $149 million was reportedly mishandled. Officials decided to terminate the contracts before they were signed and finalized.
The construction of the propylene and polypropylene plant with the Italian company Tecnimont and its Spanish partner Técnicas Reunidas, was to be the president’s biggest bid to industrialize natural gas, which is the country’s main source of wealth. It was the country’s largest contract, at US $2billion.
Ortiz said he wants to investigate why the Italian company had been awarded three contracts, the conceptual engineering study, the strategic support service and the engineering and construction project for the polypropylene and propylene plant.