The Boise, Idaho-based Washington Group took over construction of the plants--a 1,600 megawatt plant and an 800 megawatt plant--when it purchased Raytheon's construction and engineering division last July. However, the company recently developed a cash flow problem and it halted work on the plants in an effort to avoid bankruptcy.

"Pursuant to guarantees to Sithe, we're now taking on an oversite role," David Polk, spokesperson for Lexington, MA-based Raytheon, tells GlobeSt.com. When Washington Group bought Raytheon's engineering and construction division an agreement was reached--after what Polk calls "an almost unprecendented time in due diligence"--that Raytheon would maintain financial responsibility for some projects and project guarantees to others. These two plants have project guarantees.

"WGI found itself in a financial predicament and it said it couldn't finish the project," notes Polk. "Sithe needed to clear the way for Raytheon to step in so it got an order to cancel the contract." Polk emphasizes that Raytheon is not interested in getting back into this aspect of business.