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Daily News - 25 September 2002

Tropical Storm Lili is a lady, so far
The 11am bulletin of the National Hurricane Center of the United States indicates that Tropical Storm Lili is moving on a west-northwestward course. This course would lead it away from most of the Dominican Republic, with current forecasts predicting only torrential rains for the southwestern tip provinces, namely Pedernales and Barahona. As of the 11am report, the storm was 485 kilometers South of Santo Domingo. Since the tropical storm force winds extend outward up to 185 kms from the center, they have not been felt in Santo Domingo this morning. 
The weather service says that the storm remains poorly organized and could be downgraded to a tropical wave later today. The storm, nevertheless, will continue to be closely monitored. Its position at 11am was 14.1N and 69.3 W. 
Radhames Lora announced that as soon as it was known the Dominican Republic was on the hurricane’s path, emergency forces went to work. As a preventive measure, schools was closed today in the southwestern provinces.
To track the storm, see http://www.intellicast.com/ 
Also visit the DR1 Hurricane Page with many useful links. 

President Mejia to visit Peace Corps
President Mejia will meet with Peace Corps Director Gaddi Vasquez during his visit to Washington, D.C. on 26 September. He is scheduled for an afternoon meeting with Vasquez this Thursday. President Mejia will give a talk to the Peace Corps staff and volunteers.
Last month, Peace Corps Director during his stay in the Dominican Republic, Vasquez spent time at projects in at least four communities. While there he met with President Mejia and invited him to visit when in DC this week.
Several officers and members of the Friends of the Dominican Republic will be on hand to represent the 3,000 past Peace Corps Volunteers who have served in the DR since the summer of 1962. 
The Friends of the Dominican Republic celebrated the 40th anniversary of the Peace Corps in the DR with a four-day conference last February held in Santo Domingo. Over 300 Americans and Dominicans attended. 
During the National Peace Corps Conference held last June in Washington, D.C., Dominican Ambassador Saladin hosted a reception at his residence to honor the Peace Corps with over 80 people in attendance.
President Mejia will be in the United States from 26 September through 5 October. He is scheduled to visit Washington, D.C., Philadelphia, Boston, Lawrence, New York, New Jersey and Miami. 

President Mejia cuts Sergio’s hair
President Hipolito Mejia was in Villa Altagracia yesterday and cut merengue bandleader Sergio Vargas’ locks. Vargas had said he would not cut his hair until the government had repaired the roads of his hometown, Villa Altagracia. Vargas had been letting his afro grow for three years. 

What will the new bills bring?
President Hipolito Mejia announced in his speech on 17 September that the power bill increases would be effective in the November bills. But after the Listin Diario, in its Tuesday issue, reported that the Superintendence of Power Resolution 31-02 was applying these retroactively to August consumption. 
El Caribe newspaper points out today that President Mejia said in his speech, “I announce to the country that as of October, the government will no longer subsidize the consumption of power, with the only exception of the ghettos.”
After the Listin Diario released the information on the resolution, the Superintendence of Power clarified that the power rate would apply to the September consumption that appears in the October bills. The Superintendence of Power Resolution 31-02 stipulates that the October bills showing consumption for September will now be billed at RD$2.49 per kilowatt-hour for the first 300 kilowatt-hours and RD$3.07 for the subsequent kilowatt-hours, plus a fixed charge of RD$39.04, up from RD$3.97 previously. 
Meanwhile, the Listin Diario reports that many users have already received bills with hefty increases. 
Rumbo Magazine says that President Mejia favored passing the bill due to the inefficiency of the power distributors in collecting their revenues from the middle class. The power companies have fallen way below the levels of collections that were programmed for this date. The Rumbo article explains that the middle class is bearing the brunt of the increases because they do not have the recourse of disconnecting from the distributors to buy power directly from the generators, as do the large industrial and commercial consumers. 
Meanwhile, an article from Hoy’s economic section says that the worst is not over. In the 17 September speech, President Mejia also announced that the government would allow the price of power to float according to inflation, petroleum prices and the devaluation of the Dominican peso. After October, there will be new increases to come. The October rates of RD$2.49 and RD$3.97 were calculated with the exchange rate RD$18.03 to the US dollar and the barrel of petroleum at US$21.38. The November rates would increase to show the RD$19 to the dollar exchange rate and petroleum barrel rates of US$25-30. 

Spending less on social programs
Listin Diario reports that in the first seven months of the year, government spending on social expenditures is well below what was programmed in the National Budget for the period of January to July. The hardest hit sectors, according to the Ministry of Finance data, are social assistance and educational programs. The government allotted Education RD$202.1 million less than what was budgeted, and also eliminated the propane gas subsidy, generating savings of RD$1.4 billion. From January to July government revenues were up 22.4% compared to the same period last year, but the funds were primarily allotted to general services (personnel and expenditures). 

Bonds to pay off the electric bill? 
Economic advisor to the President, Andrés Dauhjare says that the government’s best option is to go to the international capital markets for the US$179 million needed to pay the private power companies, according to El Caribe newspaper. This would be the second bond issued in two years. 
Minister of Finance José Lois Malkum also favors borrowing to settle the debt with the power companies. He had previously announced efforts to secure a US$200-million loan with the World Bank. However, the paperwork would have taken longer to complete, meaning that the debt would amount to more than the loan by the time it was finalized. 

Carlos Salcedo to head 2004 election?
El Caribe newspaper reported on Tuesday that 14 senators would back Carlos Salcedo, present director of the Fundacion Institucionalidad y Justicia (http://www.finjus.org.do) to preside on the Central Electoral Board (JCE). The PLD and the PRSC are opposed to Manuel Ramon Morel Cerda continuing as president of the JCE, citing his partisan performance in the 1998 congressional and municipal elections. The Senate is responsible for choosing the judges of the Central Electoral Board and earlier, 20 of the PRD senators in the Senate had said they would support Morel Cerda’s intentions to continue as president. 
The PRD has 29 senate seats, the PRSC has two and the PLD has one. 
The JCE board that is elected would be responsible for organizing the 2004 presidential elections. 
Salcedo is an executive director of Finjus, a civic society organization. He graduated with a degree in law from the Pontificia Universidad Catolica Madre y Maestra in 1987 where he subsequently completed a Master’s in business law. He is a professor of business law at the same university. 

USAID US$100 million donation
President Hipolito Mejia and US Ambassador Hans Hertell signed an agreement last week for a US$100-million donation to programs in reinforcing non-governmental agency programs to combat poverty, education, environmental, health (AIDS prevention, vaccination among others), democracy and programs implemented by the government. The Dominican government has committed itself to matching up to US$33 million in donations and will disburse the funds over a six-year period. 

Japan helps public schools
The government of Japan donated RD$173.9 million for the construction of 14 public schools in Santo Domingo and Puerto Plata. The new schools will provide classrooms for an additional 14,400 students. The Agency for International Cooperation of Japan (JICA) is working closely with the Ministry of Education on this project. 

Power success story
El Caribe newspaper describes the success story of the Las Terrenas power company. The estimated 4,000 inhabitants of Las Terrenas are pleased with the service. While rates are more expensive than those of Edenorte, which does not serve the region, the service may actually be cheaper. The Las Terrenas company charges only for what it supplies. Customers of the larger power distributors, Edesur, Edenorte and Edeeste, normally complain they are being billed for power outages. Curiously, despite long hours of blackouts, bills never seem to go down.

Santiago trade exhibition
The Xvth EXPO-Cibao opens this evening at the Barranquita Sports Complex in Santiago. Thousands are expected to visit the fair; the most important exposition held annually in the central region of the Dominican Republic. This year, the fair honors the Pontificia Universidad Catolica Madre y Maestra, which is celebrating its 40th anniversary. 
The fair is sponsored by the Santiago Chamber of Commerce and Production and will last until next weekend. Discourses, business conferences and bargain sales are all part of the Santiago trade exhibition. Hoy and El Caribe newspaper feature special reports on the event. 
 
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