If Addendum 13 is not approved, we will put a cross on Majes II

By: Roberth Orihuela

The former executive manager of the Autonomous Authority of Majes (Autodema) and former head of the Administrative Authority of Water (AAA) in Arequipa, Isaac Martínez, warned that if Addendum 13 is not approved, Arequipa gets into a shirt of eleven varas. Not only would there be a Cobra arbitration, also from Luz del Sur, the company that will build hydroelectric plants with the water generated by Majes Siguas II. And if you wanted to resume the project you would have to wait at least five years.

Addendum 13 was not approved and we are at risk of international arbitration. How do you see this panorama?

Apart from that, we have to think about how everything advanced is going to be: the Pusa Pusa land that has been purchased, the Tarucamarca land, the works that began on the Angostura dam. In addition, the concessionaire will charge for the 4 years that the machine has been paralyzed, and even the loss of profits. And let’s see that the concessionaire of the hydroelectric plants could also report us.

Is there nothing left to do?

I am not saying that we should submit to what the company says. Nothing of that. But what we have here is a contract signed by the regional government, on behalf of the national government, and that we are not complying with. 4 years have passed! Although the company has had its shortcomings, the regional government has failed to comply.

Is Addendum 13 the only solution?

We are in limbo again. We have reached the point where there is no other way. The counselors are the ones who have to decide and do not show signs of a solution. It gives the impression that they are avoiding responsibility. They can sin by omission of functions.

Couldn’t the national government take over the project?

Let’s remember that it is a regional project, not a national one. We cannot ask for help after the Ministry of Agrarian Development and Irrigation (Midagri) offered to take over the project in 2020. Let us remember that those who opposed were the councilors themselves.

Would we have to wait for the arbitration to end to resume the project?

The conflict goes by separate ropes. The national government could take over the project, but how? if there is no money. Mines closed, income is spent on bonds, could there be money for Majes Siguas II?

What other problems are we coming up with?

If Majes II does not come out, we are left with a tremendous gutter (irrigation infrastructure that was made for Majes I and II) that today has half its capacity. In addition, the tunnels are damaged and it is imperative to repair them. That is the set-up that is the responsibility of the regional government and that we are not complying either, because there is not even a file and it is said that it could cost about a billion soles. If we don’t repair them, in about five years, the entire driving system is going to fall apart.

But in the event of a political decision, is it possible for the project to come out?

First you have to solve the arbitration. But apart from that they can do another process. Midagri could assume it, and we would have to bid again. A new feasibility study could cost us about $ 50 million. We are talking that if we do not solve the project now, hopefully it could be paralyzed for about five years. In short, if the addendum is not approved we are putting a cross on Majes.

Some point out that Addendum 13 should be assumed by the concessionaire …

The contract states that when there are new circumstances an addendum is made and this is assumed by the regional government. It is the commitment that has been signed. The point was that it had to be resolved quickly, in about 6 months at the most. And the regional government should have said: yes or no I accept the addendum.

The Cobra company has been bought by French investments. Should that be of concern?

Any company would like to get out of Majes II. I do not blame them. Because they have been fooling around for 4 years. If I were the dealer, I would not expect them so much and in 6 months the termination of the contract would begin.

Could diplomatic steps be taken to see if they give us a deadline?

Yes it could. But with the attitude that the counselors have, I think they are saying it all. They do not want to take responsibility. And there the Comptroller’s Office must intervene. How much money are we losing? Much.