Óscar Urviola: “The negligence of the government of Arequipa we will all pay”

Oscar Urviola know the project by heart Majes Siguas II, about to fall and generate a millionaire arbitration to the Peruvian State. He was one of the TC magistrates who resolved his release in 2015 when Cusco prosecuted him. The ruling of the TC determined that there was water for Majes and Cusco. Urviola regrets that, having overcome the impasse, the Regional Government of Arequipa (GRA) has been unable to execute it.

The Angostura-Siguas concessionaire submitted a letter requesting the expiry of the Majes II contract.

Very worrying. Article 166 of the Contracting Law allows a company to terminate the contract when the entity fails to comply. It is evident that the GRA, despite having all the approvals of the Ministry of Economy and Proinvestment, did not approve addendum 13, which modifies the Majes project. This matter came to Constitutional Courtl (TC) and it was resolved favorably for the project. After overcoming this situation that set it back five years, there was no decision from the regional government. The addendum is generated by a need to adapt Majes without harming Cusco. It has justification. Remember that both regions entered into conflict over water.

The failure of the TC triggers this addendum. It affected the project.

The ruling made it possible to unlock it and meet the expectations of Cusco and Apurímac, which, although they have the right to the Apurímac River, could not oppose Majes II. This forced to propose a modernization of the project initially conceived with open channels (now it will be with pipes). The regional authority, not only this one, but the previous one, acted with total negligence. The situation worsened with Cáceres Llica and the current directors. They are negligent and I warn that they are exposed to high responsibilities. I repeat, the contractor can solve. But that will entail direct responsibilities for the heads of these regional entities.

Governor and regional councilors who did not sign addendum 13?

That’s how it is. Article 166-2 of the Contracting Law states that, if the injured party is the contractor, which it obviously is, due to the negligence and lack of action of the GRA, the entity must recognize the respective compensation for the damages irrigated under the responsibility of the owner of the entity. To this must be added the responsibilities that the General Administrative Procedure Law indicates by omission. Even the Penal Code establishes figures as in art. 377 by omission, refusal or delay of functional acts. Clearly there is an unjustified delay here.

Are you saying they can go to jail?

Of course, the omission of functions generates responsibility. There is a counselor (Elmer Pinto) who must make the opinion (for addendum 13). I listened to it and it says there must be lower dimension plots. That topic is over. The project is approved as is. If that gentleman does not comply with issuing the opinion, he will incur responsibility and that must be highlighted. You will have to answer.

What does the law say about penalties for omission of functions?

The public official who illegally omits, refuses or delays any act of his office shall be punished with imprisonment. So clear. What they are doing is not that simple. It is highly responsible. They play with the interests of Peru, the region and thousands of Peruvians.

The concessionaire proposes US$ 220 million for damages. Who pays?

To speak clearly. We are all the State. All of us will pay where the resources come from. We will all pay for the irresponsibility of the Regional Government of Arequipa (GRA), the previous and the current management. In this way, we demand that the GRA reach a conciliation with the concessionaire. The damage is not only the compensation, but also to the region due to the opportunity costs and what is going to be lost. I have seen with surprise that, in Arequipa, very few spoke out to demand that these authorities overcome the inconvenience.

But in Arequipa there is a current of opinion against the project. It is said that it will be for Chileans.

They are the same arguments when the malls arrived. Majes will not be for Chileans or Argentines. The project will generate thousands of jobs. You have to be obtuse to think like that.

There are councilors who insist on smallholdings and reject the agro-export modules.

Our democratic system allows ignorant people like the one you just mentioned to make such a proposition. At this point when the project is structured. I call on Arequipeños not to choose people who only bring backwardness.

Others ask the GRA to do it.

To raise that is to ignore public entities. They do not have economic resources or technology.

Do universities or professional associations pronounce themselves?

They are thinking about the next elections. They are the best entities to do it. The college of economists, engineers, Conrede, where are they? Why don’t they speak up?

Now, the real thing in all this is that the increase in the project also attracts a lot of attention, first it cost US$404 million, then it rose to 550 million and now 100 million more, that generates a lot of mistrust…

Yes. That usually happens in projects that have a delay beyond the difficulties of the project itself.

It seems to me that the highest costs are generated by poor management, perhaps even the poor conception of the project in its origins, but the project is already like this, we cannot go back in any way, that will cause more damage to Arequipa.

Another concept that is perceived here is that the addendum is synonymous with corruption…

The addendum has already passed through the MEF, Pro-investment, the rest is speculation and finally, if there is any hint of irregularity, it is subject to subsequent control and those who have committed the alleged irregularities will have to pay for that responsibility. But stopping it now will be more damaging for Arequipa.

The arbitration with Cobra would not be the only one, we must not forget that Majes has an energy component, the concession has been granted to Luz del Sur and if Majes does not come out, it would also initiate legal action against the GRA…

That’s right, that’s why the ideal is that the regional authorities approach the dealer and reach an agreement. There is time to avoid arbitration, which given the current circumstances I think the dealership has everything to gain.

Shares the idea that the central government assumes the project

I believe that, at this time, returning the project to the central government would be another delay, the regional government is the one that has this matter in its hands, we demand that those who have to make the decision do so for the good of Arequipa and Peru, otherwise They are going to incur responsibilities that we are going to take care of pointing out when they occur, if they occur.