AES Gener has said it expects costs to rise on the 531MW Alto Maipo hydropower project in Chile, as the company looks to find a new contractor following termination of a construction contract with Constructora Nuevo Maipo (CNM).
The project, which is over 50% complete, is now in technical default following the contract termination in June, which AES said was due to a breach of contract, Reuters reported. Over $600 million has been added to the current debt of the project as a result, and the company is now in talks with its financial backers and other potential contractors.
The project has been hit with several setbacks this year, including former partner Antofagasta sale of its interest in the project back in January.
