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Trans Gas: cost exceeded 310 million $…. Syrian Gas: “pacta sunt servanda”

Controversy still exists. As well as, Claims are continue from Russian gas company Trans about amounts paid by increasing the value of the project in the southern region of the central region “Alfrekls” continuously from the Syrian Gas Company .. But pacta sunt servanda, according to Syrian sources of gas .. The case is in the hands of the Council of Ministers..


 The story began in 2005 when the tender was awarded to Russian gas company Trans contracts were signed with the number 92/2005 dated 5/12/2005, followed by Documentary credit No. 9 / 2006, the parties agreed that the implementation period of two and twenty months starting from 4/4/2006, at an estimated value of the project 190 million dollars and one billion Syrian pounds, where the project will be implemented on the basis of key hand (the engineering studies, supply and installation work and initial operation ) ..

But what happened after that has led to delayed implementation of some phases of the project and the high value of the real costs of the project, estimated by the Russian side over the 120 million dollars, according to a novel parties, the problem continues and controversies also continuing.
 “Syrian Gas” story
Direct the project started on 4/4/2006 It is known that the duration of the project as the contract was 22 months, after the company acquired Trans Gas to the book containing the technical requirements, the basic designs of the initial draft, in addition to the requirements of the Syrian Gas Company, in terms of commitment to global measurements, particularly AFPC, as the novel Hussein farewell development and investment manager of natural gas, adding that the contractor should have finished work within the terms of the contract, the existing initial designs and is determined on the basis of 100% and the contractor to submit designs 120% of the work.
The farewell to the Russians provided the basic designs of the project was adopted by the Syrian Gas Company, but after a period of time and through market research contractor to secure equipment, has found that prices were higher than expected, Trans returned to the Syrian Gas Company to discuss the request Some amendments to the approved designs, previously accepted the aim of reducing expenditure, is not the amendment by “the Syrian Gas Company” and stresses farewell to request modifications were done, “Trans Gas”, and proposals were discussed by the contractor was agreed formulas and technical solutions to suit both parties, including not Contrary to the contract signed between the parties, was signed a joint record so committed to the Syrian side to implement the amendments without any reflection on the financial or time changes.
no additional requests for contracts
It notes the director of development and investment of natural gas to the Russian side claimed that they had provided more than Nodal requirements, and demonstrate “the Syrian gas” that no additional requests to the Syrian Gas Company, but the contractor submitted designs were adopted by the Syrian Gas Company and in accordance with paragraph of the contract Nodal 9-3 That, “if the need arises to add facilities or equipment in order to ensure the achievement of the required implementation under the provisions of this contract or to implement the project in accordance with good engineering practice, specifications and standards contained in the book of terms consequences of the contractor to provide all of those supplies without incurring any additional costs Administration , Although those supplies were not mentioned in the contract. ”
The farewell that the designs provided by Russian and adopted by Syrian company is preparing designs and studies German CAC is a neutral party was by consent of both parties, (which was confirmed by both parties approve the designs), which is in accordance with the requirements of Nodal and Conditions Document was adopted substantive adoption By the Syrian Gas Company, and all the amendments agreed upon after seeing the Russian side of higher prices was signed on condition that the record of financial commitment and the time the contract signed between the parties on 4/12/2006, where the paper says the last of the record, it was the amendments under discussion Asked the Russian gas company without any additional cost or affected in time, and the “Trans Gas” to comply with the requirements and terms of the contract without delay in the implementation of the project (the contract), which confirms the value of the contract firm, but the Russians did not abide by the contract and demanded compensation for losses .
• Specification Nodal
Between farewell to the specifications of the AFPC which sets strict specifications for materials and minerals and how to pursue the business which includes design, equipment and oil installations, in addition to the contract specifications agreed upon between the parties, which included the entire contract specifications and approved by Trans Gas Company, and is also known that the contract is part Entire parcel.
Through follow-ups show the existence of some increases in total some items and equipment as well as a shortage and the deletion of certain equipment and business .. Because the project is the key texts by hand according to the contract and increases and decreases arise partly from a technical requirements necessary for the safe operation of the project, in accordance with Article 9-3 of the contract are not entitled to claim any contractor Shi.
The Director of Development and Investment of natural gas, that the contractor did not see a way to compensate its losses now, only through the claims of additional work on the project to all the services and additional work is the right of my contract must be executed in accordance with 9-3 of the contract.
“STROYEXPO Trans Russian gas” story
Since the contract was signed with “the Syrian Gas” in its history began work in accordance with the words of Deputy President Vladimir Buzindhv company “Trans STROYEXPO Russian gas”, but the designs submitted by the company were Syrian contain a number of errors did not appear at the beginning, but after going into details, These errors appeared the company was notified by the Syrian Gas Company, and has already asked the Syrian Gas STROYEXPO amendment of the gas, and told the Syrian side STROYEXPO high expenditures for the draft of the amendments, and the Syrian side insisted on amendments, the amendment was functional designs have become the real value price of a new unwritten.
He stressed once again that at the time of execution itself and because of the impact of the change of work performed and to be implemented, where business has increased markedly, and the Protocol to the contract when the company Syrian recognition of additional work, where there is a difference between the designs that we have signed with the company and the Syrian actual designs executed by the company Post, and adopted by the Trans and the Syrian Gas Company, did not submit any papers to that. ”
• different story
Gyourko Bing project manager in Homs, a number of applications were introduced  in isolation from the contracts, after it had been implemented, she returned the Syrian Gas Company said that it wants to return to the contracts, through the implementation of the project have emerged new applications modified for the initial conditions, which obliged us to the amendment.
The Vice-Chairman of Trans Gas Company STROYEXPO Russian commitments to the decadal study design and make sure it is accurate, and, accordingly prepare detailed design and final, and comply with all technical requirements which we give to the Syrian side, either technical requirements which we from the Syrian side contains errors and contradictions great, and actually design After the final finished in preparation for the 5 month in 2007 passed a year to provide basic design 2006 and the final design in 2007, thus Buzindhv shows that after the fifth month of the year 2007 and at the final evaluation, the company began to request the equipment I had to put the purchase orders at prices However, recent prices of 2005 and after that changed the whole world prices, known as the Trans no reason, but they will implement the Syrian side, so we insist on the ratification of the prices of equipment from companies to the new prices, hoping that the Syrian side will take an appropriate decision in the interests of the contractor, where Trans pay From the pocket money estimated at 120 million dollars increase on the project; Therefore, we raised the matter vigorously in front of the Syrian administration, and the topic so far suspense pending and Trans still working, implementation was still ongoing and supplies still come to Syria, adding that the total value of equipment up to the contract to increase Nearly 128 million dollars.
• claim .. Costs
Buzindhv stressed that the company is not claiming any profit, but claimed the actual expenditures and paid by a real under discussion and understanding between the Syrian Gas Company and the Syrian government and Syrian Gas Department, did not get on the Trans document from the government in respect of compensation for companies, where he visited President of the company Syria Moscow three times did not obtain the result.
Attempts to resolve
What the director of development and investment of natural gas that the losses were due to delays in starting the process of buying equipment and machinery caused by delays in the development of basic plans and designs finalized, which led to higher prices for materials, which is also referred to Vice President of Trans Gas Company and approved by, in addition The differences between the prices of the dollar, since the terms of the contract to purchase Russian equipment company from the European countries within the list of companies that were delivered to the Russian company with the book of terms, in addition to the U.S. embargo of the sale of oil equipment or on the Syrian industry, as a result of the purchase of gas from the Trans-European countries collaborating The euro has led to differences in currency exchange rates between the stage of signing the contract and agreed to stage equipment, (where the dollar in 2005 from approximately 1.2 euro, while in 2007 of close to 1.9) also agreed that the parties were in the research office of the prime minister repeated the complaint Of Trans Gas were formed a committee to consider the requirements of Russian company headed by Abdullah Dardara Deputy Prime Minister and membership of each of   Eng.Sufian Alao Oil Minister, Dr. Fouad John Ziralsnall, Dr. Ahmed Ali, Minister of Electricity.
And the director of development in the Syrian Gas Company was exempt from the penalty clause estimated at 40 million dollars, and the extension of credit expenses paid by the Syrian Gas Company, with the contract acknowledges that the cause is paid, in addition to the exemption from all duties and taxes in Syria, as explained Deputy chairman of Trans that there is no delay, but our demand to delay penalties were estimated at 40 million dollars.
The project .. Where?
Project is considered one of the most vital projects, which will contribute to supporting the national economy through the provision of additional sources of energy, especially in light of the growing demand for gas as a clean energy by the different industrial sectors, especially power plants, with an estimated production of the plant b (6-7.2 ) Million cubic metres / day gas Nazif, (50-60 tons / day) of domestic gas, and (4430 – 5300 barrels / day) capacitors.
Observations in the investigation:
In the Syrian Gas Company, did not mind Ali Abbas general manager of the company to speak with anyone who has any relationship, but said: What concerns us is transparency and all securities companies under the carer, slacken in everything except in the negligence and corruption.
In contrast Trans Gas Company, provided all the facilities, but abandoned securities, particularly the record of meetings Supplement of the Decade; grounds that they are confidential.


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