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Policing the collecting of power revenues? El Caribe revealed yesterday that President Hipolito Mejia may announce on Tuesday the creation of an Energy Police as part of measures to resolve the power crisis. The possibility became the center of discussion. When asked, President Hipolito Mejia denied being aware of any proposal to create an Energy Police to work in conjunction with the Union Fenosa and AES power distributor companies. But he said that if necessary, he would create such a force. Minister of Finance Jose Lois Malkum, who heads the governmental commission negotiating with the power companies, confirmed that the authorities are evaluating the possibility of the new system. Mario Lopez, general manager of Edenorte and Edesur, the affiliate Union Fenosa power distributors, said they urged the government to create the force to assist them to increase their revenues and to combat fraud. Carlos Ros, president of the American Chamber of Commerce, favors the measure. A US US company AES, member of AmCham, owns AES Ede Este, one of the power distributors. But most people have spoken up against using a public force to collect bills for a private company. Opposing the government funding of a such a body are: Ignacio Mendez, of the Federacion de Asociaciones Industriales (FAI), (speaking for the industrial community), Ernesto Martinez of the Organizacion de Empresas Comerciales (ONEC), who speaks for commercial centers, and Aquilino Doñe, of the Asociacion de Ferreteros, which groups hardware stores. These claim that the enforcement of collection is the explicit duty and responsibility of the power distributors, as outlined in their contractual commitments. El Caribe sources also disclosed yesterday that the government could announce rate increases of 33-40% to appease the power distributors and get these to reduce the power outages. The power crisis has become a very pressing issue. Businesses and middle class residences in the Dominican Republic are set up with alternate power energy sources. But these systems operate at high costs and most cannot handle the long blackouts. Newspaper business sections repeatedly indicate that the blackouts are a last ditch effort for the power companies to pressure the government into making concessions in their favor. Protests continued in the low-income barrios suffering from the extended hours of blackouts. News reports say that approximately 28 individuals were injured in demonstrations taking place in Cristo Rey, Gualey, Capotillo, Espaillat, Mendoza and Las Palmas. Neighborhoods where everyone pays for the service are also being served long hours of blackouts. |
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What do the companies do with their revenues? The power crisis was heatedly debated in Congress yesterday. The Senate passed a resolution requesting copies of the privatization contracts to study what the government commitments with the companies are. In the Chamber of Deputies, Victor (Ito) Bisono, spokesman for the PRSC deputies, said that his party favors a total revision of the privatization contracts of the CDE. He said the crisis is now affecting everyone and that Congress would like to find out what the power distributors do with their revenues. He mentioned the companies deduct 2.75% of the total revenues for technology upgrades. The idea was that the money would fund the companies becoming more effective collecting for the service. He questioned that despite the considerable revenues the deduction produces for the companies, these are now requesting a police force assist in collections. |
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Don’t blame the barrios Father Jorge Cela, a well-known grassroot spokesman, denies that low-income communities can be blamed for the present power crisis. He said that these barrios consume less than 15% of the total. And that they are being used as scapegoat. He further stated that the government is not paying for its own consumption, which accounts for much more than 15% of the total share. “If the government itself isn’t paying, how can it talk about barrios not paying?” he asked. He says the main problem with the barrios paying for the service is that the companies have not been effective collecting for the service. He also posed the question, “If the service is not billed effectively, how can the companies collect?” For instance, Guachupita neighborhood signed an agreement to pay for the service and a week after the number of power outages increased when the 16 May election was over. He complained that the companies didn’t give enough time for the neighborhood agreement to work and said that the companies are lying when they say the barrios do not meet the agreements. The companies have not been fulfilling their part of the bargain in rendering the promised hours of power. In the case of the ghetto barrio of La Cienaga, he said that when the service was provided, the company went from collecting RD$1,500 to collecting RD$150,000, which is proof that Dominicans want to pay for the service, when service is properly received. Father Cela said that the Dominican people have been suffering from the power crisis since the 60s and have always been told that the difficulties will be solved next week. He hoped President Mejia would provide definite answers when he speaks on the matter on Tuesday, as announced. “At least three Presidents have promised to solve the problem and have not done so. Then it is not strange that the people have little faith in the promises made to find solutions,” said Father Cela. He said that the power distributors are using the long hours of power blackouts to pressure the government for concessions. In his opinion, the power distributors should invest in installing a meter in each dwelling and government office, bill a fair rate, and then only cut the service to those who do not pay. |
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Urging the government to act in favor of consumers Monsignor Agripino Nuñez Collado, rector of the Pontificia Universidad Catolica Madre y Maestra, the largest private university in the Dominican Republic, warned of the increasing irritation among Dominicans regarding the abuses of the power distributors. In an interview in the Listin Diario, Monsignor Nuñez spoke of the general exasperation of receiving the same and sometimes increased power bills during a time in which 15-hour long blackouts are common. “Everyone here knows there is enough installed power generation capacity for there not to be such long blackouts”, he said. He reminded the government that the role of its negotiators should be to protect the interests of Dominican consumers, not to penalize them. “If I have the right, according to the contract I signed, to receive 24 hours of power, and I only receive five hours, then I should get a credit on my bill for the 19 hours of service I did not receive. But this does not happen and there is no one to appeal to,” he said referring to the abuses of the foreign power companies. |
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Power distributors lax about collecting The president of the business association Asociacion de Comerciantes de Gurabito, in Santiago, Federico Estevez, told Hoy newspaper how the Edenorte power distributor has shown considerable disinterest in collecting for the service in the northcentral region of the country. He said that a regional general manager began a plan to increase the number of paying customers, only to abandon the strategy shortly after. He said that the meters were installed, but Edenorte does not send receipts for the consumption, despite these being in central areas of the city. He said that his association has contacted the company about working together, but has been ignored. He criticized the practice of Edenorte of installing meters while not specifying the customer’s account nor verifying if the client is paying for the service. He said this makes it apparent that Edenorte is not interested in establishing efficient collection systems and finds it much easier to have the government as its sole client. |
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Taking out loans to buy buses President Hipolito Mejia sent to the Senate yesterday a US$8.1 million loan with a Brazilian bank for the purchase of 135 buses that would be distributed to transport union members as part of the Plan Renove. The loan would be paid in seven years at 2.9% interest. |
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Irregularities in concessions The president of the Public Works Commission of the Senate, Vicente Castillo (Peravia-PRD), criticized the pace of construction of the government-endorsed highways, which are to be paid with toll booth revenues. He said that apparently several of the companies favored with the concessions are only just beginning to conduct their feasibility and cost studies. He said this is not appropriate or ethical because the government has already approved the amounts it has committed to pay the companies. He said that, if necessary, the government should suspend these contracts. He specifically criticized the San Cristobal-Bani highway. |
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Drug liaison officer at US Embassy El Caribe reports that the US government has appointed Richard Hawkins as the new full-time US government drug enforcement agent in the Dominican Republic. Hawkins is expected to arrive this month and will be stationed at the US Embassy, as part of joint efforts on behalf of the State Department and the Department of Justice, to combat the use of the Dominican Republic as a bridge for drug trafficking between South America and the United States. |
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Dominicans on re-election Penn, Schoen & Berland-El Caribe poll shows that 65% are against presidential re-election. Only 36% feel Mejia should accept to run again, including 69% of his own party. Only 20% believe Mejia will stand by his word of not running for office in 2004. |
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Banco del Progreso was first DR1 Daily News incorrectly reported earlier this week that the Banco Popular Dominicano was the first Dominican bank to announce the service of accounts in Euros this month. Claudia Handall, assistant manager bank’s corporate division, clarified that Banco del Progreso had already done so in April of this year. Ambassador Miguel Amado, who represents the European Union in the Dominican Republic, himself visited the bank’s headquarters on J. F. Kennedy to open the first account in Euros. |
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Puerto Rico-DR holiday packages Diario Libre reports that Dominican and Puerto Rico tourism executives met in San Juan, Puerto Rico to discuss the selling of combined Puerto Rico-Dominican Republic holiday packages. During the meetings, the need to improve port and air infrastructures was mentioned. Today the mile per dollar cost of flying to Puerto Rico is the highest of any airline route. Paola Dimitri, executive director of the Santo Domingo Hotel Association, said that there is a need to break the cliché that the tourist who travels to Puerto Rico is not the same as the tourist who travels to the Dominican Republic. Puerto Rico would like to share in the flow of European travelers the Dominican Republic enjoys. The Dominican Republic receives many times more than the scant number of 26,000 Europeans that visited San Juan in 2001. |
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Business mission to Canada The Dominican-Canadian Chamber of Commerce announces it is hosting a Trade and Investment Mission to Canada this coming October 18. With the support of organizations such as the Trade Facilitation Office of Canada and the Embassies of Canada and the Dominican Republic, representatives from organizations in the Dominican Republic seeking markets for export or investors will be traveling to Toronto and Montreal. While there, they will take part in a 4-day program focused on the agribusiness and tourism sectors. On the dates of October 15th (Toronto) and October 17th (Montreal) meetings will take place between leading representatives and government representatives who will detail the investment markets and opportunities in each of these countries. On October 16th (Toronto) and October 18th (Montreal) direct meetings have been scheduled for organizations in each of the sectors. For information regarding meeting with exporters from the Dominican Republic, please contact the Trade Facilitation Office of Canada in Ottawa (Attn: Phillip Kelly) at 1-809-383-27631. For additional information on participating in this program, please contact the Dominican-Canadian Chamber of Commerce in Santo Domingo (Attn: Debra Walker) at 1-809-383-2763 or by email to ccdc@codetel.net.do |
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