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Daily News - 6 March 2001
No date for Delta to fly to DR
Christine M. Frias, manager of Corporate Communications for Latin America and the Caribbean denied statements by Lilia Moliné, director of the Marketing Plan for North America of the Dominican Republic that Delta would fly soon to the DR. Frias told the DR1, "Nothing really has changed. We don't have plans to service the Dominican Republic as of yet, but we continue to evaluate new markets on an on-going
basis to strive for the optimal usage of our limited aircraft resources."
The comments of the Ministry of Tourism executive appeared in yesterday's brief at http://www.dr1.com/daily/news030501.shtml
Modern managing of the costly national fuel bill
The Minister of Finances Fernando Alvarez Bogaert said that the government plans to issue bonds (to be known as Soberanos) to help pay for the high cost of the petroleum bill. The Minister said that his department is in contact with several brokerage firms and international banks prior to carrying out a tender to choose the firm that will launch the bonds, as reported in Hoy newspaper. Alvarez Bogaert says that the timing is right for the launching of government bonds because the US Federal Reserve has been dropping interest rates.
El Siglo newspaper says that the government is also considering taking out an international bank loan to improve the international reserves. He said that the economic team of the government has been working on this strategy.
El Siglo recently reported that the government had made payments of RD$1,295 million to service the international debt in its first six months in office. This is 33.9% more than last year.
Mexican company sells out to Dominican Pringamosa
The Consorcio Azucarero del Caribe (Conazucar), the Mexican sugar consortium, announced the sale of the mills it had acquired after winning a privatization tender to Pringamosa, a Dominican capital company. Pringamosa already operates other sugar mills it acquired in the same tender. Consorcio will pass for US$8 million the Haina, Ozama, Boca Chica, Consuelo and Quisqueya sugar mills. Conazucar is said to have been affected by financial problems in Mexico that impeded the firm from making the necessary investments in the DR. As a result, several of the mills had been abandoned. The operation has been approved by the Dominican government's CEA, previous operator of the mills.
DR now has four women generals
President Hipolito Mejia swore in four women generals at his National Palace office yesterday. The new generals are Daisy Liriano Paulino (Police); Ramona Diaz Morfa (Army); Lourdes Altagracia Estrella (Armed Forces) and Carmen Virginia Cabrera (Navy)
Navy sinks eyesore of a barge
The Navy successfully sunk yesterday the Balaou barge that had run ashore in front of the Banco Agrícola on the Santo Domingo Malecón boulevard. The barge was damaged during Hurricane Georges in September 1998 and abandoned shortly after by the owners that refused to undertake the expensive salvage operation. President Mejia ordered that the petroleum within the tanker be removed and the ship sunk. The Navy removed an estimated 300,000 gallons in time to avert a natural disaster. News reports say that 80 men worked 24 hours a day for 15 days to carry out the operation. The ship was sunk at a considerable distance from where it ran aground to not affect transport operations in the area.
Police announces new computerized finger print system
The Police recently announced its new digital finger print identification system that is linked with a central database. The Police say that new system should reduce to 10% the number of people the Police actually arrests during raids. The Police patrol units will be able to verify, using laptop computers, whether a suspect person has a police record prior to making an arrest for further investigation.
Fire creates scare at Banco de Reservas
A small fire sent several Santo Domingo Fire Department units to the Banco de Reservas located at Calle Isabel la Catolica in the Colonial Zone. Fortunately, the fire, which originated in a second floor paper deposit, was put out quickly. Smoke enveloped several floors of the bank giving the impression the fire had been greater. Bank administrator Manuel Lara Hernández said that the bank would operate as usual today, and that only documents of little worth had been destroyed.
President of PRD opposes closed candidate lists
Governing party PRD president Hatuey de Camps agrees with opposition party colleagues from the PRSC and PLD that the candidate lists for the parties in the municipal and congressional lists should be left open, as reported in Hoy newspaper. In the past the political parties have set the order of the lists, with those at the top being "elected" depending on the number of votes the party receives in total. The electoral law seeks to give voters the freedom to choose anyone on the list, regardless of the order in which the name is listed. The JCE has proposed to restore the old order where the parties decide, not the voters.
The president of the PRD says that all parties would gain from the open lists. He said that it would relieve the parties of internal pressure from politicians that want to be chosen to make the first places of the lists.
De Camps spoke on the El Dia television program, produced by Huchi Lora and Ramon Núñez.
De Camps also expressed his opposition to the way the Senators (the majority is PRD), want to modify the Constitution. He said that if Congress wants to impose its will without taking into consideration other national sectors, a political crisis could result. He feels senators and deputies should allow that the constitutional reform discussions be handled by a commission made up by members of the Supreme Court of Justice, jurists, specialists, and spokespeople for the civic society.
Housing sales down
Hoy newspaper reports that builders and real estate vendors are feeling the impact on new sales of tax measures in effect since January 1 and the high interest rates that prevail. Long term housing financing went in the second half of 2000 from 18 to 22-26%, which has put a damper on new sales. The Asociación de Promotores y Constructores de Vivienda says that sales in the first two months of the year are down 50% in regards to last year. Cristian Ciccone, vice president of the Dominican Chamber of Construction confirmed that sales had gotten off to a slow start. He is optimistic once the new measures are internalized and the economy picks up again, sales will also pick up. Builders estimate the new measures have increased their costs 10%.
Asonahores on tourism in North Coast
The vice president of the National Hotel & Restaurant Association told Hoy newspaper that government and private sectors need to take urgent measures so that necessary investments be made to bolster the North Coast travel. He said that the area is affected by a major financial crisis, as owners of small hotels struggle to meet the present high interest rates costs. He said that the increasing operational costs are also affecting the small businessmen in the area. He said that reports are that the flow of travel to the area has dropped 8% when compared to previous years.
The financial crisis has impeded some small hotels that depend on walk ins and individual travelers to upgrade and upkeep their facilities. He commented that Sosua hotels, where reportedly 20 have closed, are facing competition from all-inclusive operations that have opened in the same area.
Puerto Plata was the first tourism destination in the DR. The area is also affected by internal competition from booming areas such as Punta Cana-Bavaro in the East Coast.
Villanueva commented that the government sector could contribute much to improve the situation. He said that an attempt of the Ministry of Tourism to clean up the beaches of the North Coast, was met by opposition from politicians that alleged that the vendors that occupy beach space should be allowed to remain on the premises because they are "padres de familia" (family bread-winners). He said that Minister of Armed Forces Jose Miguel Soto Jimenez has instructed Tourism Police agents to proceed as necessary seeking the improvement of the beaches.
Also affecting the area is internal politics and particular interests of municipal sectors that have impeded the start of a World Bank project that would build new infrastructure in the area.
To assist small hotel owners, Villanueva said that Minister of Tourism Ramon Alfredo Bordas has given instructions so that small hotels can participate as a group, at no cost or a very small cost, in international promotional fairs.
Hotel Association against building hotels in National Park of the East
The National Hotel & Restaurant Association says that its official position is to reject the construction of hotels at the limits of the National Park of the East. President Mejia had authorized this by decree, and later by a bill sent to Congress. As reported in El Siglo newspaper, Asonahores said that the parks should be used to promote sustainable tourism development, but does not favor developing any area of the National Park of the East. Asonahores says there are plenty of beach areas available for development. It mentions Playa Grande in the North Coast and Los Corbanitos in the Southwest, both government owned.
The same article quotes Arlette Pichardo, director of the environmental office, Pronatura, as rejecting the bill that is at present in the Senate. Pichardo worked for years with the International Center of Economic Policy of Costa Rica, prior to her job with Pronatura.
She highlighted the importance of competing with high quality services. "If we use our resources unwisely, within five or ten years we are not going to receive any travelers. We have to be clear about what are the ties that have to be established between the development of natural resources, preservation and the care of these resources and tourism development," she said. She says that travelers seek natural clean spaces and that to compete the country must offer high quality services. "Within this framework is how tourism should be understood," she said. "Travelers are not going to come because we open mega projects on our beaches; travelers coming for sun and beach seek clean natural spaces, not mass development."
Government allots RD$32,000 million in public works without tenders
El Caribe newspaper reports that the present government has committed RD$32,000 million of government funds to carry out public works, most contracted without a tender. State departments doing the contracting without tenders are primarily the Ministry of Public Works (Seopc), the Coordinating and Supervising Office of Public Works, the National Institute of Potable Water (Inapa), and the National Institute of Housing (Invi). In his speech of 27 February, President Mejia made the announcement that the government was investing RD$32,000 million in 1,100 projects.
Engineers Amable Montás, Alejandro Montás and Roque Napoleón Muñoz visited the newspaper to express their support to the Institutionality and Justice Foundation effort that the government appoint a commission that would supervise tenders and public bids for government works. The commission would help separate political favors from the construction of public works, resulting in better public works and savings for government finances. They also urged that the government restore the bill to this end that had been sent to Congress by the previous government in 1999 and that was ignored by Congress at the time.
Fenatrado truckers at it again
Members of the very powerful Fenatrado truckers union are at it again. The enemy No. 1 of competition in the DR seeks to again impose its strength to impede that independent truckers transport cargo from the Port of Haina, the nation's largest. Fenatrado, according to the report in Hoy newspaper, already controls some ports totally, such as the San Pedro de Macorís Port. The Fenatrado truckers believe they have the right to at least 50% of the cargo transported from that port. They have been known to use violent means to achieve this imposed minimum quota.
The Mejia administration appointed a leading Fenatrado man, Diógenes Castillo to direct the OMSA public busses office. Several newspaper reports have reported extensive corruption in his office. These reports have not been heeded by the government authorities.
Storm affects flights to the DR
What is being described as the biggest storm of the year in the Northeast of the United States affected American and TWA flights to the Dominican Republic. Continental flights operated with several hour delays. The New York area airports were not closed, but airlines preferred to cancel flights to avoid stranding people at airports. Extra flights have been carried out to Miami and Puerto Rico airports to help passengers reach their final destinations. Heavy snow began falling across the Northeast of the United States this morning as the major winter storm moved into the region and could last for another 24 hours, as reported by cnn.com
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