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Daily News - 16 February 2000
President Fernández in Japan
The Japanese government has committed to donate more than US$40 million for development programs:
Health: US$8.6 million for vaccination program.
Education: US$7.5 million primary schooling in rural areas and low income barrios. US$5.3 million for the expansion of the Instituto de Formación Técnico-Profesional (Infotep).
Natural resources: US$5 million for the improvement of forests and irrigation in Arroyo-Cercado, Jarabacoa zone. Potable water: US$10 million for construction of water treatment plants in Jarabacoa, Constanza, Piedra Blanca, Baní, Salcedo, Sánchez, Maimón, La Vega, Monseñor Nouel, Peravia and Samaná. Agriculture: US$4 million to increase farm production.
Yesterday the Japanese government announced commitments to finance the installation of Japanese companies in the Santo Domingo Cyberpark. The Japanese assistance will be channelled through the Japan Bank for International Cooperation (JBIC), the Japan International Cooperation Agency (JICA) and the Japan External Trade Organization. Prime Minister Keizo Obuchi promised to fund farming projects for Japanese immigrants to the DR. The Fernández administration donated 750 hectares to 250 Japanese immigrants and their descendants that came in 1956-57 following an offer for farming land made by then Dictator Trujillo. Despite the unfilfillment of original promises, many of the settlers stayed on and have roots today in the DR.
The today Prime Minister of Japan visited in 1975 when he was a member of that nation's parliament. President Fernández invited Prime Minister Keizo Obuchi to return to the DR to see the nation's progress.
In his tight schedule, President Fernandez found time to meditate at the Meiji-Jingu Buddhist temple and to visit the Maruzen bookstore. On his schedule was also a visit to the Fujitsu Corporation in Kawasaki.
On Thursday, President departs to Singapore for more investment promotion meetings. He will give a talk on the Dominican economic model and perspectives for development in the 21st century.
His trip to the Far East finalizes with a visit to Bangkok, Thailand where he will participate in the Xth UNCTAD Conference on trade and development.
Prime Minister Keizo Obuchi thanked President Fernandez for his offer to receive in Santo Domingo the guerilla takers of the Japanese Embassy in Lima, Peru, if that would contribute to resolve the crisis. The group had taken over the Embassy on 17 December 1996.
President Fernández meets with Emperor Akihito
Hoy newspaper reports that Emperor Akihito received President Leonel Fernandez in private for 25 minutes at the Salon Takenova of the Imperial Palace, prior to their both attending a luncheon. During the private meeting, the Emperor and President Fernández exchanged decorations, with Fernández receiving the Order of Chrysanthemum, and the Emperor, the Order of Christopher Columbus. At the luncheon with the Japanese Emperor, President Fernández was joined by cabinet members Minister of Foreign Relations Eduardo Latorre, Secretary of the Presidency Alejandrina German, Minister of Industry and Commerce Luis Manuel Bonetti, Minister of Tourism Felix Jiménez, Technical Secretary of the Presidency Temístocles Montás and Dominican Embassy charge d'affairs, Jaime Vargas. The Emperor was accompanied by his son, Prince Narahuito, heir to the throne, and nephew Prince Takanada.
Private distributors open to resolve billing problems
The Edenorte and Edesur (Union Fenosa), two of the new power distributors, admitted to the Listin Diario that indeed there have been problems in their billing system. Yolanda Souto, spokesperson for the firms, said that they favor the presence of the Electricity Superintendence inspectors in their offices, to assist consumers that have complaints. While she denied that they are estimating and not reading electricity counters, the newspaper presented several cases of bills that showed major errors. Souto said that the company is willing to correct the billing errors. Hundreds of persons have been visiting the offices of the new distributors in January and February to seek corrections in their January bills.
A step forward for privatization
The Superintendence announced the start of operations of the Organismo Coordinador, the body that will regulate the operations of buyers and sellers of power in the DR. As of the entry of the coordinating organization, the state electricity utility, CDE, desists in its role as intermediary between the private generators and the private distributors. News reports say this will mean that the CDE will begin to receive earnings from the sale of energy generated by the hydroelectric plants which continue under its control. Likewise, the CDE will collect from the distributors for the use of its power transmission lines.
Marcos Cochón, president of the Electricity Superintendence, said that starting today the companies will operate as independent units in a regulated market. The CDE was privatized six months ago.
Who will pay the debt?
The Fernández administration inherited a US$70 million debt with the private generators, primarily Dominican Power Partners and Smith Enron Cogeneration Limited Partnership, when it took office in August 1996, according to El Siglo newspaper. As of 1 February, that debt had increased to US$102 million.
The Executive Branch proposed to pay US$40 million to the generators this month, but wants to leave US$62 million pending to be paid by the government that takes office on August 2000. Thus it would be leaving about US$8 million less in debt than that inherited from the Balaguer administration in 1996.
The private generators don't like the idea. They have not accepted the proposal. Smith Enron's general manager Kevin Manning told El Siglo newspaper that the 185 megawatt plant located in Puerto Plata would go off line as of 24 February if the government does not make payments of US$29.7 million. Manning says that of the US$40 million proposed by the government, they would only receive US$10 million, and have pressing debts for US$25 million with their own suppliers. Manning complains that the government did not fulfill previous agreements reached in May 1999, nor that reached on 23 November.
In order to renegotiate an accumulated debt, Smith Enron accepted arbitration, which eliminated a clause whereby the government had to pay the company per installed capacity, not by energy served. Because the plant was installed at a time when it was considered a high-risk investment, the company's contract provides for a much higher rate than that being paid companies installing themselves now. Thus, for Smith Enron it is important to collect now on the debt because as new plants go online, their higher priced power will not be as necessary as it is today.
Today, when Smith Enron goes off line the country suffers long blackouts. But it is expected the dependence on that plant will decrease as months go by and new plants enter into operation. With the presidential election coming up in May, the power plants want to take advantage of the political interest on behalf of the government in providing citizens relief from power outages, to get paid now.
Making matters worse, the presidential candidate for the PRD, does not like the idea of inheriting this debt. He is quoted today in the El Caribe newspaper advising the generators to collect now or cry later. "I have spoken clear: the generators need to collect their money and make the government fulfill its promises, because if they do not collect now, they will not collect later, and the CDE should also be clear on this," said Hipólito Mejía, presidential candidate for the PRD.
National Symphony Concert tonight
The second half of the National Symphony Orchestra 1999-2000 season opens 16 February at the National Theater in Santo Domingo. The program for tonight is:

16 February. Julio de Windt, Conductor.
Cesar Franck. Symphony in D minor.
Dairus Milhaud. Concert for Percussion and Orchestra Opus 109. Special performance by percussionist Miguel Angel Castro.
Peter Tchaikovsky. 1812 Overture.
Tickets: RD$200, $150, $100, $50 students.
Costa Verde-Rio San Juan Carnival
The northeastern coastal region known as Costa Verde (María Trinidad Sánchez province east of Puerto Plata) is preparing for its Carnavarengue 2000 taking place 13-20 February. The event merges carnival and merengue festival celebrations. Events will take place in Nagua and María Trinidad Sánchez province.
World class volleyball at the Olympic Center
Players that will be part of the US professional volleyball circuit that starts action in January 2001 have pending a final game in Santo Domingo. The US players, under coach Arie Selinger, winner of two gold medals in Olympic Games, are playing members of the Dominican volleyball team at the Volleyball Pavilion of the Juan Pablo Duarte Olympic Center. A final game is set for this afternoon at 4 pm (RD$10 admission). The US players will then move on to Santiago to play the Dominican team at the Santiago Sports Palace on Thursday, 17 February and Friday, 18 February. Another group of players is scheduled to arrive on Sunday for more practice games in the DR.
Qualifying round for the World Polo Cup
Club de Polo Casa de Campo in La Romana will host regional trials for World Polo Cup on 24-27 February. The International Polo Federation coordinates the trials. Glen Holden, president of the Federation, was in the Dominican Republic this week to attend planning meetings. Guatemala, Costa Rica, Jamaica and the DR will vie for a spot to play against the national teams of Canada, Mexico and the United States in California in April.
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