MOSCOW (MRC) -- ESPANOLA corruption scandal in Bolivia had led President Evo Morales to cancel two petrochemical plant contracts with two European companies, as per Plastemart.
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 USD149 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 Tecnicas 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 USD2billion.
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 (PP) and propylene plant.
We remind that, as MRC wrote before, Austrian chemical company Borealis is carrying out feasibility studies for a polypropylene (PP) unit and a mixed-feed steam cracker at Borouge, the petrochemicals complex it owns jointly with Abu Dhabi's state-owned Adnoc in Ruwais, UAE. The study for the new PP unit- known as PP5, is in its latter stages, with a final investment decision expected later this year. The new plant would have a production capacity of around 600,000 tpa. Abu Dhabi refiner Takreer is building a new 500,000 tpa propane dehydrogenation (PDH) unit at Ruwais that is planned to start up in the third quarter of this year. This will create a significant excess of propylene in the complex that would easily support a new PP plant, Borealis chief executive Mark Garrett said in March 2017.