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Distributors should not apply increase yet Superintendent of Electricity Julio Cross said that Edenorte and Edesur are not authorized to increase the power rates until the government clarifies when it will discontinue its responsibility for covering the subsidy. The confusion arises because President Hipolito Mejia in his 17 September address on the matter said that the government would no longer be responsible for the subsidy as of 1 October. The so-called subsidy covers those who do not pay for the service (ghetto barrios and the government), thereby increasing in the cost of producing power to those who do. Cesar Sanchez, general manager of CDEE, nevertheless wants all consumers to pay their consumption retroactively from 1 September. Meanwhile, consumers received their bills as usual, with no deductions for the long hours of blackouts the companies imposed in August and September. The Listin Diario newspaper cartoon satirizes the situation with an Edesur power distributor company billboard advertising a 2-for-1 sale: Pay double and get one blackout free! |
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Power distributor losses explained The Grant Thornton financial analysis of Edenorte financial statements shows that a significant portion of the losses reported by the company are due to loans contracted above market rates by the company. The company reported loans borrowed at 24% in 2000 and 18% in 2001. Market rates of 12% were the norm at the time. According to the analysis, the company would have had savings of RD$102 million if it had secured financing at normal market rates. Superintendent of Power Julio Cross also criticized the investment of US$20 million in a management system. A similar system was installed by another power distributor, AES Ede Este, at a cost of US$2 million. Furthermore, Cross said that 36% of the assets reported by the company were intangibles that only exist in their imagination. He said the assets served the purpose of transferring earnings to affiliate companies. Executives of Edesur and Edenorte have denied the irregularities in the generally accepted accounting practices publicized by Power Superintendent Julio Cross on the Aeromundo TV talk show last Sunday. |
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PRSC leaders ask new JCE board to resign The committee of 50 political leaders of the Partido Reformista Social Cristiano (PRSC) met yesterday and concluded that all judges elected on Thursday by the Senate should resign. The new JCE board is due to be sworn in today at 3 pm. The board has been criticized for not having been chosen by consensus, and for being politically-slanted to favor the same faction within the ruling Partido Revolucionario Dominicano (PRD) - the PPH faction that backs the re-election of President Hipolito Mejia. |
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What’s behind the pipeline protest Mayor Domingo Batista says he will take AES to court over the construction of a 34-kilometer natural gas pipeline through Santo Domingo’s Este neighborhoods. The pipeline is going up to supply the AES Los Minas oil-powered plants that are being converted to use natural gas and would entail cost savings of 30% and less pollution. But neighborhood groups oppose the construction of the pipeline that traverses heavily-populated neighborhoods on the grounds that it is too close to the surface. The Mayor and city residents argue that the pipeline should be at least 1.8 meters underground. They say the shallow ditches make the pipeline vulnerable to potentially catastrophic pipeline failure and explosion. They mention further that the track record of companies repairing damages is poor, citing the case of the leakages in Falconbridge’s oil pipeline that caused millions in damages. El Caribe newspaper explains that the construction continues with the support of the Ministry of Environment, the Ministry of Industry and Commerce, the Corporation of Potable Water and Acueducts (CAASD) and the central government. Environmentalists defend the natural gas as a clean alternative to present systems, and a more efficient source of power. But the key to everything is that the proper measures be in place so as not to jeopardize the neighborhoods. Hoy newspaper questions the impasse with the municipality, saying that there does not seem to be a true interest in tackling the real issues of the problem. It mentions that the city government could be looking for something else. The previous city government received RD$4.1 million to authorize the construction while the case of the pipeline was not reviewed by city hall as would have been the normal procedure. Hoy newspaper reports that the conflict on the construction of the pipeline worsened after AES refused to make payments to the new authorities of the Santo Domingo Este municipality for supposed supervision of the construction. Construction has advanced 95% towards completion, according to Hoy newspaper. AES says that the supervision is the sole responsibility of the Ministry of Environment and that it has obtained all the required licenses and permits. Meanwhile, the president of the special commission of aldermen of Santo Domingo East municipality, Ramon Medina recommended that the city hall act against the company. He accuses AES of paying more in bribes than in taxes, as reported in Hoy newspaper. |
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Sovereign bond money in reserve Minister of Finance Jose Lois Malkum told El Caribe newspaper that the RD$2.03 billion of sovereign bond resources allotted to the Dominican Electricity Corporation (CDE) in August has not been spent. He said the sovereign bond money was converted into pesos and deposited in the Central Bank. The newspaper had speculated that the money had been used to pay arrears due to the power generators. Malkum explained that the government is seeking a US$200 million loan with the World Bank to pay the power generation companies and rescind several of these contracts. He said that if this financing cannot be secured, the government will seek a way to use the sovereign bond funds to pay the generation companies. He said the National Budget report mentions these figures because the funds were originally allotted to the CDE to build the transmission line Santo Domingo-Santiago. However, given the measures of severity set in place to restrain the overheating of the economy and the devaluation of the peso, the money was converted into pesos and deposited in the Banco de Reservas and later returned to the Central Bank. At the end of August, the government completed allocating most of the RD$7.9 billion (approx. US$500 million) sovereign bond money. This would mean that of the deposit made to the Central Bank only RD$600 million remains. The newspaper concludes that since the Minister of Finance declares that the funds allotted to the CDE have not been spent, the Central Bank reserve of the bonds’ unspent money should amount to RD$2.6 billion. |
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Five-gallon bottle price increase makes headlines The announced price increase of the five-gallon bottles of water to RD$23 is making headlines, as certain vendors started selling the bottles at RD$25 for home delivery. The Water Bottling Association announced the increase, saying that recent hikes in financial costs, petrol, electricity and wages make the increase necessary. Yesterday in Santo Domingo Bravo Supermarket on Winston Churchill was still selling the 5-gallon bottle for RD$15. El Caribe says the producers claim their costs have increased by 17% this year. The association authorized a 15% increase. |
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Miami-Punta Cana flight correction DR1 erroneously reported that American Airlines would begin the Miami-Punta Cana flights as of 15 December. The flight is already in the reservation system, however, scheduled to begin on 1 November. Flight 2415 departs from Miami (MIA) at 11:25 am arriving at Punta Cana (PUJ) at 2:54 pm. The return flight is number 1830 departing from Punta Cana at 4:06 pm, arriving in Miami at 5:45 pm. Six flights a week are programmed. |
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Gary Player comes for opening of Guavaberry Legendary golf player-turned golf designer, Gary Player is in Santo Domingo for the official opening of the Guavaberry Golf Course in Juan Dolio. Player also is visiting to announce the construction of a second 18-hole layout that would convert the course into a 36-hole facility. “Our experience with the first course was fantastic. Senior Designer Warren Henderson helped create a beautiful routing with large scale features within this beautiful residential community”, said Gary Player. “With 36 holes, Guavaberry will be positioned to lead the fast growing golf development industry in the Caribbean.” A quarry on the site will distinguish the second course from the first through dramatic elevations and unique rock features. The theme from the incredible landscaping plan implemented throughout the first 18 will be carried to the second layout, with native Coroso palm trees and indigenous plant species providing beautiful accents to in-play and out-of-play areas. Born in South Africa, Gary Player’s name is recorded in golf history as the three-time winner of the Masters and the British Open, the only player in the 20th century to win the British Open in three different decades (1959,68,74), and as one of only five players to win all four Grand Slam titles (others are Hogan, Nicklaus, Sarazen and Woods). He has also won 2 PGAs, a U.S. Open and 2 U.S. Senior Opens. Mr. Player holds title to 21 wins on the PGA Tour and 19 more on the Senior Tour. |
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Dominicans in the MLB playoffs Diario Libre reports that every single team playing in the Major League Baseball playoffs includes at least one Dominican. Overall, 15 Dominicans are on the teams, with 10 Dominicans on the rosters. The breakdown and the names of the Dominican players on the rosters are: American League New York Yankees (Alfonso Soriano, Raul Mondesi, Enrique Wilson) Anaheim Angels (Ramon Ortiz) Oakland Athletics (Miguel Tejada) Minnesota Twins (Cristian Guzman, David Ortiz) National League Arizona Diamondbacks (Miguel Batista, Felix Jose, Danny Bautista, Miguel Batista) St. Louis Cardinals (Alberto Pujols) Atlanta Braves (Julio Cesar Franco, Rafael Furcal) San Francisco Giants (Felix Rodriguez, Pedro Feliz) For more information on the schedule of the games, see http://mlb.mlb.com/ |
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