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President Mejia on US tour President Hipolito Mejia will travel on 26 September to the United States to participate in Dominican Week (see http://www.rvhb.com). In Washington, D.C. There, he will speak at the Dominican Week luncheon at the US Chamber of Commerce. He will also receive an honoris causa at Mercy College in New York. On this trip he will hold meetings in Washington, D.C., Maryland, Pennsylvania, Rhode Island, New Jersey, New York and Miami. In Maryland, he will meet with former US Ambassador Charles Manatt. |
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Power companies should absorb increases Listin Diario business page reports today that the power companies should be the ones to absorb the increases in the cost of producing power. Government power negotiator Jaime Aristy explains that since operations began in 1999 both the generators and the power distributors have been billing in excess, which explains their hefty profit repatriations at a time when their accounting records show millionaire losses. The newspaper points out that the government should require the power generators and the distributors to pick up the tab for the international cost increases as compensation to consumers for the years of billing these in excess. The newspaper says that the companies have received millions in windfall profits since the year 2000 as a result of passing on to consumers the increases in production costs. The government has allowed the companies to shut down service in the barrios (blackouts that increase the average rate at which power is billed), to shut down power plants in order to reap financial gains, to bill for expensive fuel while using low-cost fuel, and to apply an irregularly high product cost indexation formula since 1999. Andy Dauhajre, economic advisor to the government and one of the government negotiators, said that costs to produce power have increased 43% when compared to February 2000. In his opinion, consumers and power companies should equally share the increase in cost. The newspaper reporter asks why can’t the distributors and the power companies pick up half of the cost increases, given that they obtain earnings simply by indexing prices or adjusting prices, something unheard of abroad. According to Dauhajre, the Dominican government paid RD$2.6 billion to the power generators and distributors for indexing of costs, and this year Union Fenosa affiliates, Edenorte and Edesur, claim an additional RD$1.6 billion. In August 2001, the government had announced that the subsidy had been eliminated when the government accepted to extend the contracts to these companies for another 15 years. |
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Rumors as to what the government is negotiating El Caribe newspaper says that the government would accept appointing military strongman General Pedro Candelier as head of a new organization that would support efforts of the power distributors to collect amounts owed in the low income barrios. Candelier, a former chief of the Police, currently heads the Metropolitan Transport Authority. Some government negotiators oppose this proposal because they consider the collection of debts to be a contractual commitment made by the power distributors. This would be the first time Dominican government security force aides a private firm to collect its debts. Meanwhile, El Dia says that the power distributors are lobbying for a reduction in the penalties imposed by the ruling of the General Electricity Law for irregular blackouts. At the same time, the power companies are also lobbying to stiffen the penalties against clients who do not pay for service. El Caribe says the government is considering applying increases of 33% on those who consume 800-1,200 kilowatts per hour, and 40% on those who consume more than 1,200 kilowatts per hour. El Caribe also says that the government will announce a 15% wage increase to compensate public workers and encourages the private sector to do the same. President Mejia is scheduled to announce new measures in the power sector next Tuesday. El Caribe says that consumers can get an idea of the increase in their bills by checking the value of the so-called government subsidy that for months has appeared on the invoices. |
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Audit firm shows confidence dwindling According to a third quarter poll by the auditing firm PricewaterhouseCoopers, the Consumer Confidence Index is slow. The survey, published in today’s Listin Diario, measures the optimism or pessimism of the business sector and is a short term snapshot of the Dominican economy. Dominicans are pessimistic about the outlook of the future. According to the survey, only 26% are optimistic. Nevertheless, 44.5% believe the economic measures announced by the government will have a positive effect. 37.9% feel they will have a negative effect. More information may be obtained by calling Price at 8909 567-7741. In another poll carried out by the American Chamber of Commerce businessmen said that the areas of most concern were in the high cost of taxes, financial costs, power service and increases in the cost of raw materials, given the rising exchange rate. The Penn, Schoen & Berland poll commissioned by El Caribe also shows an eroded confidence among Dominicans in the Mejia government. |
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Government report card El Caribe-Penn, Schoen & Berland poll reports on how Dominicans rate the efforts of Dominican governmental departments. 72% of Dominicans say efforts in education are good or very good. The other governmental departments or efforts get the following ratings: sports 68%, farm support 67%, culture 63%, potable water service 55%, public works 54%, health 53%, housing 52%, environment 51%, garbage collection 50%, drug combating 50%, RD$300 per month social plan 50%, fight against crime 49%, housing solutions 46%, fight against corruption 45%, fight against poverty 38%, citizen safety 37%, cost of living reduction 27%, economic stability 26%, creation of new jobs 24%, and energy 15%. The survey shows that the public perception of the education sector has increased from 56% in February 2002 to 72% in August 2002. It also shows a marked decline in public perception of efforts by the government in the energy sector, plunging from 53% in February 2002 to 15% in August 2002. |
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Competitiveness? Hoy newspaper’s editorial today focuses on the contradictions in government policy. On one hand the President and the Ministry of Industry and Commerce are promoting the National Competitiveness Plan. On the other, the government has taken measures that seriously curtail Dominican industry’s capacity to compete in free trade scenarios. The newspaper mentions the talk of extending benefits to power companies that would increase the already exceptionally high cost of power in the Dominican Republic. Power accounts for 11% of the production cost in the Dominican Republic, much more than the average 4% for other countries. There is ongoing talk of a price hike in the cost to consumers would be announced next week. Also mentioned are the high and increasing costs of borrowed money in the Dominican Republic. Interest rates have skyrocketed as a result of restrictions on money in circulation. These restrictions were put into place as a result of excessive government borrowing to build public works and pay debts at a time when the country’s leading trade partner suffers an economic slowdown. The editorial says that the high taxes paid here are another obstacle to competitiveness. Business sectors complain that the government practice of taxing exports seriously affects the competitiveness of Dominican exports. |
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Ethanol to be produced in DR Danilo del Rosario, director of the Office for the Promotion of Foreign Investment, announced that the Hong Kong firm of Cavendish International will be investing US$250 million to rehabilitate the Haina River sugar mill (at one time the largest sugar mill in the world) and build another sugar mill in San Pedro de Macoris to produce alcohol. The company will purchase 1.6 million tons of sugar to produce ethanol, which will be mixed with gasoline and diesel. This is expected to cut 20% off fuel costs in the Dominican Republic. Richard Loiacono, president of Cavendish, signed the agreement with Juan Antonio Japa, president of the Dominican Sugar Farmers Association (Fedoca), at the Presidential Palace yesterday. President Hipolito Mejia was present. Concurrently, with the signing of the project, President Mejia issued Decree 732-02, which establishes special economic and tax incentives for local and foreign companies investing in the production of ethanol and other bio-mass alternate energy forms. |
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Madman or terrorist? Airport security forces arrested 30-year old Pakistani Khalid Badar Mudir yesterday at the Las Americas International Airport. Police First Lieutenant Timoteo Moreta Lorenzo requested that Badar be checked, after raising suspicions while standing in line at check-in for an Air France flight. News sources say he escaped authorities, only to be arrested later in the parking area of the airport. A revision of his hand luggage showed he was carrying a six-inch knife. Upon further investigation, the security forces found that while he held an Air France ticket, he did not have a reservation to fly to Paris on that day. He was carrying two passports, one expired and another showing that he entered the country on September 8. Badar said he was a student of medicine at the Universidad Autonoma de Santo Domingo, but could not show proof of this. Listin Diario says he was incoherent in his answers to questions and speculates further that he may have mental problems. |
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Dominicans mourn 9/11 victims The US Embassy held commemorative services on occasion of the first anniversary of the September 11 terrorist attacks in the United States. The Listin Diario reports that 41 Dominicans working in the World Trade Center buildings died in the tragic disaster. Dominicans paid tribute to the families yesterday. |
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Priscilla arrested by the Police Diario Libre reports that the Police arrested 19-year old Priscila Diaz Infante, sought as an accomplice in the kidnapping and subsequent murder of Victor (Franklin) Feliz Mendez. She was arrested yesterday afternoon, although had already been preparing to turn herself in; her mother having spoken to human rights commission members. The Police has mentioned that Diaz Infante had close ties to Rolando Florian Feliz, who is in jail for drug trafficking, and is mentioned as the mastermind behind the murder of Feliz Mendez. |
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Dominicans win in US election primaries Five Dominicans -- Tom Perez, Juan Pichardo, Miguel C. Luna and Jose Peralta -- won the Democratic Party primaries in the United States yesterday. This confirms the increased activism of Dominicans in US politics. To read about these primaries, see Tom Perez in Montgomery Co. Council Dist. 5 (Montgommery County council member) Juan Pichardo Democrat RI Senate - District 02 (State Senator Rhode Island) Miguel C. Luna, Providence Democrat Council - Ward 09 (Providence council member) Jose Peralta, New York State Assembly District 39 (Dem) (State Assembly Man / Representative of the New York State) Adriano Espaillat (Democrat), who in 1996 became the first Dominican-American elected to a State House in the United State, also returns as candidate for the Upper Manhattan Assembly, as opposed to Guillermo Linares, who will not continue as council member. |
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Vying to become first Dominican State Senator Bienvenido (Benny) Toribio, Jr. is running as the Republican candidate for the New York State Senate, representing the 31st Senate District (Upper West Side, Morningside Heights, Washington Heights, Inwood, and Riverdale). Born of Irish and Dominican parents, Benny Toribio seeks to become the first Dominican State Senator in New York State history. “I have spent my entire life in Washington Heights and I look forward to bringing my life’s experiences and our community’s concerns to Albany and to help improve the quality of life for every resident”, said Toribio. “Right now, we do not have a single majority member of the State Senate from Manhattan. For too long, we have been represented by politicians who are more interested in partisan bickering and posturing for public display than concerning themselves with getting things done for the community. As both a legislator and an ombudsman, I look forward to working together both with the Senate Majority and my colleagues in the Assembly to achieve tangible results and help realize our potential as the showcase community in the entire city.” Toribio grew up on 169th Street between Amsterdam and Audubon Avenues in Washington Heights. He worked for Columbia Presbyterian Medical Center for four-and-a-half years in various positions of increasing responsibility in the Receiving and Materials Management Departments. In 1996, he joined the Giuliani administration by accepting a position with the New York City Health and Hospitals Corporation at the Materials Management office of its Northern Manhattan Health Network. He is currently on leave from his position as Coordinating Manager to run for the State Senate full-time. |
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