Uruguay’s public utility UTE is to cancel its contract with the Argentinean company Industrias Metalúrgicas Pescarmona (Impsa). This firm did not meet the construction deadline for three wind projects totaling 65 MW due to an investment delay.
This is the first time that UTE has cancelled a wind power purchase contract, according to Uruguayan newspaper El País.
Impsa requested an extension and presented three possible new investors to finance the projects. However, UTE did not accept the proposal.
UTE will charge Impsa the warranty established in case of breach of contract, an amount which varies between $4m and $5m.