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Daily News - 11 January 2000
Notre Dame U, Malaysian investors and Unilever Ltd.
President Leonel Fernández took advantage of the Monday, 10 January Three Kings holiday to receive visiting international executives at the National Palace. These included top executives from the University of Notre Dame, the Malaysian consortium Berhad and Unilever Ltd.
University of Notre Dame. University of Notre Dame executives, Edward A. Malloy, president of the university, and Timothy Scully and James McDonald met with President Fernández accompanied by Diógenes Fernández, a former governor of the Central Bank. News reports indicate they spoke of informatics education programs and an increase in scholarships.
Berhad Consortium. The chief executive of Berhad consortium, from Malaysia, visited to announce the installation of two 100-megawatt barges that would sell energy to Dominican electrical distributors. The company will be investing US$120 million to install and connect the generators. Joseph Chong represents Westmont Land Berhad, Sabah Shipyard SDN and Wing Tiek Holdings Berhad. Marcos Cochón, Superintendent of Electricity, who served as interpreter, said that Malaysian technicians would spend three days in the DR choosing the site for the docking of the barges. The first of the two plants is expected to connect to the nation electricity grid by May of this year, with the second going on line in another five months. The businessmen also showed an interest in participating in the new Cyberpark, the Santo Domingo high tech industrial park promoted by the Fernández administration.
Unilever Ltd. President Fernández also met on Monday with top executives of Unilever, the largest manufacturer of consumer products in the world. Niall Fitzgerald, Unilever LTD director; Ralph Kugler, president for Latin America business of the group; and Anand Bhatia, president of Unilever Dominicana visited accompanied by Jose Miguel Bonetti Guerra, president of Mercasid and Roberto Bonetti Guerra, executive vice president. According to the Listin Diario, Fitzgerald is the chief executive officer of Unilever. Sales of the company were more than US$45,000 million in 1998. José Miguel Bonetti said that the group met with President Fernandez to express its interest in converting the DR into the regional center of operations for the Caribbean for Unilever Ltd.
Overpass over Ortega y Gasset
The Ministry of Public Works began the construction of another overpass at the intersection of John F. Kennedy and Ortega y Gasset, as reported by El Siglo newspaper. The Ortega y Gasset overpass will begin its climb in front of the Haché department store. The government has completed or is building overpasses over Winston Churchill, Abraham Lincoln, Lope de Vega, Tiradentes, Máximo Gómez, that together with the newest Ortega y Gasset overpass are intended to turn the John F. Kennedy into an expressway. The expressway is part of a World Bank-Interamerican Development Bank program to reorganize traffic in Santo Domingo.
Controversy over Northwest Aqueduct
Controversy continues over the construction of the Northwest Aqueduct. All parties favor the construction of the aqueduct that would benefit around 800,000 people in the provinces of Santiago, Santiago Rodríguez, Monte Cristi, Valverde and Dajabón. But there are differences over the government's not holding a tender when choosing the contractors, the technical aspects of the project and over the financing and the restrictions that come with the financing. The builders and the government have secured financing from Brazil, for US$161 million, supposedly sufficient for the construction of the aqueduct. The financing needs congressional approval. Those against the project say that it requires that 80% of the construction materials, including pipes, be imported from Brazil, despite these being available here at better quality and lower cost. Opposing sectors criticize that the water would have to be pumped, instead of using an alternate method where waters would flow by gravity. The Fernández administration assigned the construction of the aqueduct to Consorcio Constructora Andrade Gutiérrez, S.A., and Hidráulica Agrícola, C. por A., and did not call a tender.
The Senate has also yet to approve the Brazilian funding for US$23 million for the purchase of 10 from Helibras and Helicopteros de Brasil. The US Embassy complained on behalf of Bell Helicopters that there was a lack of transparency on behalf of the Dominican government and requested that the DR buyers allow US companies to bid in equal conditions as offered the Brazilians.
Earlier, the government purchased buses for the OMSA bus transport system from Brazil.
The Senate takes a recess as of Thursday, 13 January. Congress does not meet again until 27 February.
Monte Cristi Senator Bernardo Alemán Rodríguez supports the construction of the aqueduct, but understands that the government solution is affected by serious technical problems that if not corrected the project instead of resolving a problem will be creating one.
PRD presidential candidate Hipólito Mejía has questioned the rush. He promises, though, that he will build the aqueduct, if elected President, with or without the Brazilian financing.
Dominicana to be privatized if debt problem is resolved
The privatization of Dominicana Airlines, the state airline, will depend on the successful conclusion of the airline's foreign debt negotiations, says Antonio Isa Conde, who presides over the Commission for the Reform of Public Enterprise (CREP), the government organization in charge of privatizing state enterprises. Isa Conde said that if the debt results to cost more than the state will get from the privatization, then the capitalization of Dominicana Airlines would be aborted.
"The biggest problem of Dominicana is its liabilities, debts that if they are not renegotiated or eliminated then Dominicana cannot be capitalized, because the salt will cost more than the goat, because this is a business deal and if we will only reopen Dominicana if it is profitable deal for the country," he said.
Eduardo Selman, director of the Corporación Dominicana de Empresas Estatales (CORDE), the government holding company, said he expects the tender to be called in 60 days. Some 15 companies have shown an interest. The main assets of Dominicana are its commercial routes.
Government owes RD$120 million to milk suppliers
The Fernández administration owed school breakfast suppliers RD$120 million, as of 31 December. The suppliers said the government had promised to cancel the debt in September of last year, but did not do so. They decided to go public with their plight, since all efforts to get paid have not met with success.
The suppliers have individually not cut off supplies fearing that the company that does so will not get paid at all. They mention the case of a leading milk processor who discontinued suppliers and is still waiting to get paid on bill of more than RD$6 million.
Most affected are Parmalat Dominicana (RD$21 million in arrears), Leche Fresca, Bon Agroindustrial, Campolat, Ultrapasteurizadora Celia, Proyecto Ganadero Yzura, Lbpsa, and Planlesa.
One of the most touted triumphs of the Fernández administration is the school breakfast program. The program is important because it is a major incentive to parents to send their children to school. The breakfast also better equips children for learning. The Fernández government has been criticized for contracting services that it has not been able to meet payments on. In the construction sector, several contractors have been known to have committed suicide when the government failed to meet payments.
Back to school
Universities and schools reopened in the DR on Tuesday, 11 January after the long Christmas holidays. Schools had closed in mid December. This year schools opened later than usual as the Three Kings Day holiday was celebrated on Monday, 10 January.
Balaguer and Peynado are PRSC pre-candidates
2,700 Partido Reformista Social Cristiano delegates will choose the party's presidential candidate on Sunday, 15 January in that party's convention. Aside from the party's kingpin, 93-year old former seven-time President Joaquín Balguer, only former Vice President Jacinto Peynado registered his candidacy. When doing so, Peynado conditioned his opting to the candidacy to Balaguer not accepting the PRSC nomination. Other contenders to the presidential candidacy declined to register in the understanding Balaguer would choose to run.
Balaguer has said he will attend the convention, scheduled for the Club San Carlos of Avenida Mexico, for half an hour. Balaguer's candidacy was registered by the Movimiento Balaguer Una Vez Más por Necesidad.
Peynado was the PRSC candidate in 1996. He obtained 435,504 votes, despite not having the favor of the party leader, Joaquín Balaguer, who slanted in favor of PLD candidate Leonel Fernández. All surveys show the PRSC in third place.
Elections in the DR are won in the first round only if a candidate can muster 50%+1 of the vote. If not, a second round is called where the candidate with the most votes wins. In this round, whomever the third place party favors can win the election, as occurred in the 1996 presidential election. At the time, Balaguer openly favored the candidacy of Leonel Fernández of the PLD over José Francisco Peña Gómez of the PRD.
AA reduces travel agent commissions from 10 to 6%
The Dominican Travel Agency Association (ADAVIT) and the Dominican Tour Operators Association protested the decision of American Airlines to reduce travel agents' commission on the sale of American Airlines and American Eagle airline tickets. The airline reduced the commission from 10 to 6%, or a 40% decline. Raul Fiallo, director of AA in the DR, said the commissions were reduced due to increases in aviation fuel. The measure is effective 15 January on all pre-paid round trip tickets sold in the Caribbean, with the exception of Bermuda and the Bahamas.
ADAVIT said the reduction is illegal because the Civil Aviation Board regulates the commission. ADAVIT said that the reduction in the commission is a "death sentence" to the travel agencies, most small businesses that operate on very low profit margins.
Máximo Vásquez, president of ADAVIT says that in the DR, American Airlines depends on the about 500 travel agencies that sell AA tickets in the DR. He said that AA only maintains offices at Las Americas International Airport and in Santo Domingo. Travel agents are estimated to handle 85% of the tickets sold by the AA and American Eagle in the Dominican Republic.
Furthermore, he said that the Civil Aviation Board Resolution 96 of 1 June 1998, based on Law 505, regulates the commission on tickets in the DR.
ADAVIT has scheduled at meeting for today to continue to discuss the AA decision.
Armando Cuello, vice president of the Dominican Association of Tour Operators (Adotur) said the measure could put 90% of travel agencies out of business.
Canadian investor slain due to love affair problems
National Police reported that Canadian Anny Maries Morin was murdered in her quarters at her aparthotel in Sosua, Puerto Plata due to love affair problems. The police discarded the assault was due to an attempt at robbery. Seven persons are in jail, including Felix Alberto Díaz, the last person seen with her at around midnight. Díaz is showing trauma of his left hand and has not come up with a reason for his wounds that will take about 10 days to cure.
Dominicans need more experience to win in big meets
Dominican Yudelka Bautista of the Dominican Volleyball Team was chosen the Most Valuable Player of the Norceca Continental Olympics Qualifying Tournament that took place in Miami, Florida. The DR defeated Puerto Rico (25-23, 25-17 and 25-15), but lost to US (25-20, 23-25, 22-25, 26-24 and 15-11) and to Canada (26-24, 20-25, 25-23, 19-25 and 12-15. Cristóbal Marte, delegation leader said that the DR team has the skills but lacks the experience to stay ahead or maintain a lead when the pressure is on. He also said that the arbiters worked to the disadvantage of the DR team.
Pentathlon Pan Am events to take place at UASD grounds
The president of the Panamerican Confederation of Modern Pentathlon, Mexican Sports Minister Ivar Sisniega Campbell gave his go ahead to the hosting of the events during the Santo Domingo Pan American Games in 2003 at the installations of the Universidad Autónoma de Santo Domingo. Construction of the installations has yet to be completed. Sisniega visited the state university sports grounds accompanied by José Joaquín Puello, president of the Organizing Committee of the 2003 Pan Am Games. Modern pentathlon requires athletes to compete in fencing, equitation, track and field, swimming and skeet. The Pan American Confederation of Modern Pentathlon will be sending a technician to assist in the preparing of the championship.
Baseball playoffs
Playoffs (round robin) standings as of Monday, 10 January 2000
Estrellas 5-3 (.625)
Aguilas 5-3 (.625)
Leones 4-4 (.500) ­1 game
Tigres 2-6 (.250) ­3 games

The play offs games set for today at 8 pm are:
Santo Domingo: Estrellas vs. Licey
Santiago: vs. Escogido vs. Aguilas
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