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Hitch in the execution of the thermal project in Makó

The thermal project in Makó has been constructed as planned (with our company as main contractor, the renovation of the production well is finished, the 5 km thermal grid, the water mechanics of the production and injection surface thermal base, the complex restructuring of the consumer heat centres, the supervision control system of the production system led by heavy and light electricity are built) and only the construction of two more injection wells were to be finished (the preparedness level of one of them is 85% ) when an unexpected geological anomaly occurred which resulted in the further drilling of the injection well with 400 m thus causing HUF 120 million extra cost. The majority owner (Geoterm Invest Kft. owned predominantly by MORANDO Zrt.) of the investor project company (Materm Kft.) terminated the main contractor agreement with our company WITHOUT JUSTIFICATION. By doing so, the venture capital investor aimed to carry out the construction of the two injection plants by itself instead of supplementing the necessary resources and to manage the additional investment expenditure needed by saving the fee of our company and the professional insurance. As a result, the actual and final of completion of the project is doubtful and the professional and technical guarantees of the project’s sustainability as well as the fulfilment of the KEOP indicators undertaken are unclear.
The main construction elements of the project:
  • complex renovation and installation of a 2,300 m deep production thermal well
  • construction of two 1,700 m deep injection thermal wells
  • construction of thermal water production and injection mechanics base
  • construction of 5 km grid
  • the establishment of the heat receiver centres of the municipal central heating plant and thermal bath
  • establishment of an automatic telemechanic remote supervision control system

The planned achievements of the project:
  • application of local, environmentally friendly, renewable energy source
  • substitution of 2,300,000 m3 crude gas
  • reduction of 3,847 t carbon dioxide emission
  • introduction of 5 MW abd 67,000 GJ renewable heat capacity
  • HUF 80 million cost saving in municipal institutions
  • approx. 20 % reduction of the charges of the central heating service

The planned dates of putting the construction into operation:
  • 30 June 2011 in the municipal central heating plant
  • 31 August 2011 in the new municipal thermal bath
  • the final physical completion on 15 October 2011

Contrary to the planned completion dates, as of today on 5 April 2013, the project is not handed over yet, the investor did not settle its debts towards the contractors, the establishment of the injection technology has been completed in a professionally defective way deviating from the plan, the investor cannot account for the tender management office and cannot access the KEOP subsidy and the bank loan resources either. Following the termination of the agreement, the investor denied the settlement in relation to the project, thus up to this date the project was not handed over, it lacks operation licence and the project company cannot access the subsidy by way of fraudulent methods either. As a result, the consumers of Makó has to carry on with one of the most expensive central heating charges.