Thursday, June 1, 2023

China Railway No.10 Company Arbitration 45 Public Works

Lambayeque. Sorronto Bridge: China Railway No. 10 company tried to prevent MTC from executing the bond letter for breach of contract. Photo: diffusion

The construction company of China Railway No. 10 Engineering Group Co. Ltd. the Peruvian branch filed 45 disputes against the Peruvian government to prevent the termination of contracts for non-compliance with the execution of the plans to stop the authorities from collecting letters and bonds. even for a higher budget.

Of the 45 contracts in dispute, 30 correspond to the infrastructure works of the Authority for Reconstruction with Changes and 15 Provías Nacional, confirmed sources from the Public Prosecutor’s Office of the Ministry of Transport and Communication.

In detail, China Railway No. 10 Engineering Company filed 7 disputes, and as part of a consortium -generally with other Chinese companies, in other 30 cases.

For its part, the MTC promoted 8 disputes against the construction company of Asia, whose branch in Peru was registered in the Public Registers on July 6, 2015. In these cases, the state filed compromises, because the Chinese company illegally terminated the consigned agreements. state

Of the 45 arbitrations, eight have been favorably concluded in favor of the Peruvian Republic, but 37 are still pending.

Chamorro bridge. Another case of non-compliance by the Chinese. Photo: diffusion

According to sources from the MTC Public Prosecutor’s Office, the China Railway No. 10 Engineering Company and its partners will file an arbitration procedure for contractual payments from the Peruvian authorities for non-compliance in the execution of public works. It also avoids the payment of penalties imposed by the Peruvian State, because the Chinese construction company presents defaults in fulfilling the contracts.

Representatives of China Railway did not consult the sources.

In the MTC case, the Public Prosecutor’s Office lifted the arbitration for the termination of the contract with the Chinese construction company, because it did not comply with the execution of the works according to the established schedule.

The Republic shared with the phone numbers that China Railway No. 10 Engineering Group believes, but no one answers the constant calls.

On September 30, 2022, the National Prosecutor, Patricia Benavides, ordered to aggravate the crime of violation against the former President Pedro Castello and the former Minister of Transportation and Communications Juan Silva Villegas. Favorable objects attributed to Chinese construction companies, including China Railway No. 10 Engineering Company.

In charge. MTC Public Attorney, David Ortiz Gaspar. Photo: diffusion

One of the representatives of the Chinese construction company, Chen Junkun, was on the run after October 2021, after the provincial prosecutor specialized in the corruption of the Puno police, William Otazu Pinto, requested the arrest for collusion with the former governor of that region; Agustin Luque Chayña to avoid penalties for non-compliance with the construction of the hospital Manuel Núñez.

The frequent mode of representatives of China Railway No. 10 The Engineering Group is to use the so-called “requested arbitrators” or “express arbitrators”, which is a figure prior to the formal arbitration, which allows the construction company to almost prevent the Peruvian State.

Through this figure of “emergency arbitrators”, the Asian construction company obtained 23 guarantees to prevent MTC or ARCC from paying contracts in non-compliance, executing binding letters, balancing work or financially intervening in contracts.

  • China Railway No. 10 The Engineering Society has filed resolutions with its partners as follows:
  • -China Railway Eryuan Engineering Group Co.
  • -Vitruvio Engineering SAC
  • – EPCM Consulting SAC.
  • -Pyunghwa Engineering Consultants Ltd. A branch of Peruvia.
  • -Topocad Fabrum SRL
  • -Constructor Group and Consultant Associates SAC.
  • -GC y SA SAC.
  • -Euroconsult Peru branch.
  • A perverse part of the judgments

    David Ortiz MTC attorney warned about the indiscriminate use of “possession discretion” initiated by contractors: “When the construction company initiates an “emergency decision,” the arbitration center gives a very short deadline for the MTC to resist the precautionary request. . Which since they can have more than a hundred pages and sometimes a complex expertise include, it is difficult to develop an adequate defense plan in such a short period of time, considering that the attorney general must request technical information from other agencies.

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