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Daily News - 4 May 2001
Controversial hospital project sent to Congress
President Hipolito Mejia sent to the Senate agreements signed with US corporation Mapet International Foundation for the construction and equipping of four hospitals at a cost of US$500 million. The government would provide the land on which the hospitals would be built and would grant full tax free status for all imports needed for the construction and operation of the hospitals. El Caribe newspaper has raised many questions as to the credibility of the Mapet corporation after its researchers found out the foundation had an inactive status in the state of Florida. 
The newspaper investigators also questioned why the DR government has to provide a US$10 million letter of credit in order to access a US$30 million donation for a reforestation project proposed by the same foundation. 
Expanding the Malecon of Santo Domingo
The Mejia government will invest RD$800 million to expand the Avenida George Washington (the Malecon) from Avenida Abraham Lincoln to Calle 19 de Marzo. Three express lanes will be added and the present sidewalk area turned into a central boulevard, engineer Oneximo Gonzalez, director of the Metropolitan Transport Authority told El Siglo newspaper. He said Spanish funds will be used. After the expansion, the Malecon will have seven lanes, four going East-West and three West-East. 
Gonzalez also mentioned the government is about to give a concession to a private company for the construction of a bypass from Cruce de Manoguayabo, Duarte Highway, Avenidas Maximo Gomez and Jacobo Majluta through to Km. 14 of Haina passing through the back part of the El Higuero Airport (Villa Mella) on to San Isidro and the Las Americas Expressway in eastern Santo Domingo. The bypass would allow those heading East to go around the city, thus reducing traffic congestion. 
Tax collections up in April
El Caribe newspaper reports that April results are good for the government. According to the Direccion General de Impuestos Internos, the government tax department, April revenues were 17% more than budgeted. April tax collections were RD$3,095.11 million, up from the RD$2,265.17 million of April 2000. 
The highest increase in taxes comes from the ITBIS collections that went up 46.28% (the tax itself was increased in January 50%, from 8 to 12%, and the base was expanded to include more items.)
Taxes on alcohols and beers produced 13.31% more income for the government and manufactured tobacco sales brought in 139% more revenues. 
Income tax increased to RD$1,785.97, up from RD$1,275 in 2000. This reflects the implementation of the 1.5% tax on gross sales. 
Impasse soon to be resolved at Municipality
Waldys Taveras, the city government advisor, resigned his post yesterday. His resignation is expected to end the impasse at the municipality. Mayor Johnny Ventura had protested his presence choosing to move his office to the Palacio Consistorial in the Colonial City. The Mayor said Taveras was defending private interests while he was a municipality employee. 
Meanwhile, the Listin Diario newspaper reports that 8,000 employees of the city government have not received their pay checks due on 25 April. Fabio Ruiz, acting mayor (Johnny Ventura is abroad) said that the money is due from the Dominican Municipal League. He said he did not know if the central government has paid the Dominican Municipal League. 
Survey shows people do not like Mejia's cabinet
According to a Hamilton-Beattie poll commissioned by Hoy newspaper, 55 of every 100 Dominicans have a negative perception of the Mejia cabinet. Last November, the same poll showed that 30 of 100 Dominicans had a negative view of Mejia’s cabinet.
Soils engineer denies involvement in toppled building
Orlando Franco Batlle, the engineer who carried out the original ground studies for the toppled Palacio del Cine in Santiago, denied having ties to the project. He told the Listin Diario that he carried out the preliminary studies for a single level, six hall movie house, not for a multi-floor building as was built. He said his work was contracted by architect Victoria Lora and he does not know the contracting engineer of the building, Horacio Alvarez. He made the clarification after the engineer said the ground studies for the building had been carried out by his firm. Seven people died when the building collapsed. 
Dramatic drop in coffee prices hurts farmers
The drop in the international price of coffee below the US$60 per quintal level could force 60,000 Dominican coffee growers to go bankrupt. Miguel Melo, president of the coffee committee of the Dominican Agribusiness Board (JAD), said the low coffee prices could bring major social problems to the countryside. 
Protests against high cost of north region power
A major poultry farm has disconnected from the Edenorte, preferring to operate using its own power plant. And the northern chapter of the Dominican Association of Free Zones protests the high billing of Edenorte, which has the concession to distribute power in the northern region. Adozona members complain that after the company installed new meters, billings increased considerably. The chicken producer says he disconnected because he was tired of paying for blackouts. 
Gomez Mazara doesn't speak for the party, says city senator
The president of the ruling Dominican Revolutionary Party Santo Domingo chapter says the legal advisor to the President, Guido Gomez Mazara, does not have party authorization to unilaterally call a political gathering. Senator Jose Antonio Najri said that when Gomez invited PRD followers to meet on Sunday at the Club San Carlos in support of the current government, he violated the correct institutional channels of the party. Najri also protested Gomez’s use of the party headquarters to announce the Sunday gathering. Gomez called the meeting after a Hamilton-Beattie-Hoy newspaper poll showed that 59% of the population rejects the PRD administration.
President Mejia told El Caribe that he would not attend the Sunday gathering. 
Former VP against sovereign bond proposal
Former Vice President Jacinto Peynado in the Listin Diario today expresses his opposition to the Mejia administration issuing sovereign bonds to meet its fiscal deficit. He says that when the PRD took power in 1978 the public debt was US$900 million and after leaving government eight years later, the debt had soared to US$4,500 million.
Peynado is concerned that the short term financing of the bonds, with an interest rate of more than 11%, would only give the government more money for current expenditures. He notes that government construction is practically paralyzed due to the increase in wage payments and other non-capital expenditures. In his opinion, putting US$300-US$500 million in bonds on the international market will mortgage the future of several generations without any positive effect on the national economy. He urged the authorities to work on improving their managerial capacity so they can execute the US$600 million contracted in loans from the World Bank and the Interamerican Development Bank while at the same time reducing government expenditures instead of going the easy way of bonds financing. 
Those who favor the bonds say that the indebtedness of the country in regards to the Gross Domestic Product is only 20%. 
Bush chooses Puerto Rican as new US Ambassador
Puerto Rican lawyer, Hans Hertell, was confirmed as President Bush's choice for ambassador to the Dominican Republic. The nomination is still pending confirmation by the US Senate. According to El Caribe newspaper, the Dominican Republic already gave the diplomatic go ahead to the nomination. 
Hertell studied at the University of Puerto Rico and Fordham University in New York City. He is president of the American Builders Corporation, a Puerto Rican engineering firm. He lives in San Juan, Puerto Rico. He is married to Mary Stubbe and has three sons. From 1992-1996, Hertell was general director for Latin American and Caribbean affairs of Black, Kelly, Scruggs and Healey, a firm dedicated to governmental affairs. 
Hertell is a political appointee. He was a leading fund-raiser for President Bush. 
Prieto again urges stop to hotel construction
The president of the National Hotel & Restaurant Association, Ramon Prieto, has repeated that the nation's 52,000 hotel rooms are enough. He said the country should go two or three years without adding another hotel room. 
Prieto says that income levels of the hotels declined 10-15% during the first trimester of the year, reflecting the increase in taxes that went into effect in January. He said the hotels have had to absorb the taxes, not being able to pass them on to tour operators that have already published their prices for summer of this year. Thus hotel profitability is down. 
Prieto said he is optimistic that private sector and government efforts to increase the number of US travelers will pay off. European travel is affected by a decline in the value of the European currency in relation to the US dollar, making Dominican holidays more expensive for Europeans.
Furthermore, Prieto explains that hotel occupancy is only around 70%. The excess supply is pushing rates down. 
Tourism, Environment and New Technologies 
Spain’s Environment Ministry, the Ministry of Tourism and Preferente Magazine of Spain are sponsoring an important tourism seminar that will take place next month in Santo Domingo. They will be working with the support of the National Hotels & Restaurants, the Banco Popular in the DR and Bancaja of Spain. Ramon Prieto made the announcement yesterday at a press conference. He said the presidents of Sol Melia, Barcelo, Iberostar and Piñero Hoteles will be coming for the event. These Spanish companies have major investments in hotel properties in the DR. Bancaja is sponsoring the event as it has invested US$327 million in hotels in the Caribbean.
The event is slated for 25 June. 
The seminar seeks to create an awareness among businessmen and the general public of the importance of preserving the environment as a major attraction in each tourism region. 
Presidente Festival ticket sales
Tickets for the Festival Presidente will go on sale at all Banco Popular service centers on Monday, 7 May. Tickets are selling for RD$300 green area and RD$200 stands per night. The shows start at 6 pm, but the doors will open at 2 pm. 
The Presidente Latin Music Festival, one of the most important of its kind, will take place 1,2,3 June at the Olympic Stadium of the Juan Pablo Duarte Olympic Center. 
The stars of the show will be:
Friday, 1 June: Ciudad de Angeles, Ricardo Arjona, Gilberto Santa Rosa, Alejandro Sanz. 

Saturday, 2 June: Azul Azul, Los Toros Band, Maná and Alejandro Fernandez.

Sunday, 3 June: Zacarias Ferreira, MDO, Eddy Herrera, Los Hermanos Rosario, Marc Anthony. 

The MCs for the ceremony will be Tania Baez and impressionist Julio Sabala.
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