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Mejia agenda in Canada The press office of the Presidency released the details of the upcoming trip of President Hipolito Mejia to Canada. As reported in El Caribe, President Mejia will fly to the Canadian capital of Ottawa at noon, Tuesday, 5 November and will return the evening of Wednesday, 6 November. President Mejia will take part in talks with Prime Minister Jean Chrétien, regarding the signing of a free trade agreement with Canada, and with Canadian businessmen, regarding investments and trade with the Dominican Republic. From 14-18 October, a Canadian-Dominican trade mission visited Ottawa, Montreal and Toronto for discussions with government officials and Canadian businessmen. On President Mejia’s agenda is a breakfast at the Fairmont Chateau Laurier hotel with Canadian investors and businessmen among the invitees. The Dominican ambassador in Canada, Eduardo Fernandez, will host a reception for President Mejia at the Rideau Club at 99 Bank Street and a gala dinner at his residence. On the President’s agenda are meetings with the Axor group of Montreal, which is conducting a feasibility study of installing windmill-powered generators in the Dominican Republic. Also scheduled is a meeting with SNC Lavalin, the largest engineering-construction firm in Canada. In mid 2001, the company was awarded a RD$1.6-billion contract for the installation of aqueducts to supply water to some 400,000 inhabitants in the southwestern provinces of Barahona, Bahoruco and Independencia. At noon, Wednesday, 6 November Prime Minister Jean Chrétien will receive President Mejia at a luncheon. On the same afternoon President Mejia will attend a question-and-answer session at the Canadian Parliament. He is also scheduled for a 3 pm meeting with Prime Minister Chrétien, following which he will depart to Santo Domingo at 6 pm. |
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DR gets attention of US Trade Representative The United States and Dominican Republic held a trade and investment council meeting on 24 October in Washington, D.C. to discuss ways in which to enhance bilateral economic relations. Both countries pledged to work together to advance trade and regional economic development through the Free Trade Area of the Americas (FTAA) and, in ongoing global trade negotiations, in the World Trade Organization (WTO). A press release from the office of the US Trade Representative says that the two sides agreed to meet in the Spring of 2003 to take stock of progress being made on all of the issues discussed during the first meeting. According to the US Trade Representative, these issues included the problems affecting US telecommunications companies and US investors in the energy sector, intellectual property rights, the proposed FTAA Hemispheric Cooperation Program and a mutual interest in advancing FTAA negotiations, and the Doha Development Agenda. “The Dominican Republic is our largest trading partner in the Caribbean region and an importance voice in the FTAA and global trade negotiations,” said US Trade Representative Robert Zoellick. “I am encouraged by the direction that President Hipolito Mejia is taking Dominican trade policy. We both seek to expand trade liberalization, spur economic development and extend hope, opportunity, and prosperity throughout the region. We would like to reinforce that progress and work together to meet the critically important FTAA and WTO deadlines.” For more information, and the complete press release, see http://www.ustr.gov |
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Power rates to go up again The Superintendence of Power issued Resolution 36-02 authorizing power distributors to increase yet again the power tariff to residential and commercial consumers. In August the power rate for residential consumers was as follows: Fixed charge of RD$3.911 + consumption of up to 50kwh at RD$1.06, 50-250kwh at RD$1.43 and 250kwh+ at RD$2.56. In September, this was increased to: Fixed charge of RD$39.04 + consumption of up to 300kwh at RD$2.49 and 300kwh+ at RD$3.07. For October, the new elevated rates are: Fixed charge of RD$39.04 + consumption of up to 300kwh at RD$2.65 and 300kwh+ at RD$3.27. This means that a person who consumed 492kwh would have paid RD$905.93 in August, RD$1,375.48 in September and RD$1,461.88, or rather an overall increase of 60% - if you are lucky, as news reports indicate users suffering increases of up to 300% in their billing. In a 17 September address to the nation President Mejia authorized the power companies to adjust their rates monthly for inflation, devaluation of the peso and increases in overheads (fuel). The government is 50%-share owner of the power companies. Meanwhile, news reports focus on the demonstrations seen nationwide in protest to the abusive power bill increases. Protests were reported in Mao, Santiago, El Seibo and Pedernales, where news reports say that power meters were destroyed by irate residents. |
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Blackouts increase as generators are not paid Itabo has shut down its most costly power producing generators, five 34-megawatt turbo-gas plants, as it demands payment from the Union Fenosa power distribution company affiliates. Kevin Manning, general manager of Itabo, said that the power generators are encountering difficulties because of the delayed payments from power distributors. He said the company maintains in operation its coal-burning 130-megawatt Itabo II plant and that Union Fenosa’s Edenorte alone owes them US$15-million. Manning said that for the power system to work, the government needs to pay the distributors for the power it consumers and the power distributors need to guarantee reliable service. Manning also confirmed that the 300-megawatt Cogentrix power plant in San Pedro de Macoris was similarly shut down because of lack of payment from AES Ede Este. City residents have been subject to increased power outages while concurrently power bills have soared. In spite of the power outages, and for reasons defying explanation, power billings rarely seem to drop. Hoy newspaper reports today that the Power Superintendent, Julio Cross, sent a letter to Union Fenosa affiliates Edenorte and Edesur, laying blame for the present power outages on the Spanish company. Cross maintains that Union Fenosa’s policy is to first pay the exorbitant interest rates on loans contracted with the mother company (loans in US$ were contracted at interest rates of 24%, at a time when market rates were at a maximum level of 12%), and to discount the 2.7% fee authorized by the government. The discount policy was established so that the companies would implement effective collection systems and quickly increase the number of paying customers. Deputies Pelegrin Castillo and Jose Ricardo Taveras have requested that the Controller’s Office and the Attorney General open an investigation into the Edesur and Edenorte loans from the matrix company (Union Fenosa) at such high rates. One newspaper yesterday mentioned that only one power distributor was seeking to convert RD$250-million in the exchange market for earnings repatriations. |
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Solar-powered computer labs The Vice President and Minister of Education, Milagros Ortiz Bosch, and Minister of Industry and Commerce Sonia Guzman inaugurated a pilot project for solar-powered computer labs at the Liceo Francisco Gregorio Billini in Villa Vasquez, located in the northwestern province of Monte Cristi. The Ministry will be installing 29 solar-powered computer labs in 29 public schools throughout eight provinces along the Haitian border. The program would benefit 30,000 students. |
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Stealing mobile phones to be bad deal As of 1 November, the market for stolen mobile phones could collapse. Orlando Jorge Mera, president of the Dominican Institute of Telecommunications (Indotel), announced that, in conjunction with Codetel, Tricom, Orange and Centennial, a Center for Assistance to the Mobile Phone User is open at Indotel. If your mobile phone is stolen or missing, users are advised to contact their service provider, who will in turn will contact Indotel and place a claim. Resolution 92-02 establishes fines of RD$200,000-RD$700,000 for telephone companies that activate the phones for which claims have been presented. A report from the insurance brokerage firm of Ros & Asociados showed that as of July 2002, some 4,371 mobile phones had been stolen and that most have been reactivated. In the past, phone companies were only able to put a stop to the use of the phone if the new user sought to reactivate it with the same company that issued the first contract. There are about 1.5 million mobile phones in use in the Dominican Republic. During his announcement of the new protocols, Jorge Mera guaranteed that as of 1 November, mobile phones reported missing would no longer be activated by any company in the country. |
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DR Minister to preside CIM Yadira Henriquez, Minister of Women’s Issues in the Dominican Republic, was voted to preside over the Interamerican Commission for Women of the Organization of American States. She is the second Dominican to be elected to the post, reports the Listin Diario. The first was Carmen Natalia Martinez, a poet and feminist elected in 1956. Henriquez was elected during the XXXI Assembly of the Interamerican Commission for Women held in Bavaro. During the meeting, an eye-opening report on the Trafficking of Women and Children for Sexual Exploitation in the Americas (dated August 2002) was presented. The report indicates that roughly 400 women trafficking rings operate in the Dominican Republic and that 50,000 Dominican women are victims of these groups. The findings show that Dominican women have been trafficked to Costa Rica and Panama, among other places. In contrast to other countries in the region, the data indicates that Costa Rica, Panama and the Dominican Republic have been involved in trafficking to areas outside the immediate region as well. Routes from the Dominican Republic reach the Caribbean (Aruba, St. Martin, Curacao), South America (Argentina) and as far away as Europe (Austria, Switzerland, Germany, Italy, Holland and Spain). For more information, see http://www.oas.org/cim/English/Proy.Traf.SumFinalRep.htm |
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License plate stickers on sale The Direccion General de Impuestos Internos (DGII), the national taxation department, announces that owners of vehicles are required to purchase new license plate stickers by next month. The DGII announced that stickers will be on sale from Tuesday, 5 November through Saturday, 30 November, at DGII offices nationwide. Vehicles are assessed as followed: Private cars and SUVs (jeepetas): Models from the year 1992 or earlier --- RD$300. Models from 1993 to 1997 --- RD$600 Models from 1998 to present --- RD$1,195. Cargo vehicles: Models older than 1997 --- RD$200 Models from 1998 to present --- RD$1,195. Public transport vehicles: All models --- RD$200. For the taxpayers’ convenience, they may also be purchased at any branches of the Banco de Reservas, Banco Popular, BanInter, Banco de Progreso, Asociacion Nacional de Ahorros y Prestamos, Asociacion Cibao de Ahorros y Prestamos, Asociacion Popular de Ahorros y Prestamos and the Asociacion Dominicana de Ahorros y Prestamos. Purchasing the stickers at these locations will cost an additional RD$15. |
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Austerity needed, not more bonds Tax consultant Felipe Hernandez Paulus said that the country should not even contemplate the possibility of making another sovereign bond issuance. What is called for urgently is instead the reigning in of public spending. “The government needs to implement fiscal austerity, by cutting superfluous expenditures”, Paulus told Hoy newspaper. He said he favors signing an agreement with the International Monetary Fund instead of placing more sovereign bonds. “A new placement of bonds would be ensure a very onerous downward spiral in regards to the country’s foreign debt,” he says. |
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Berklee is in Boston, not California DR1 readers were quick to pick up on the error in yesterday’s news item on Berklee College, pointing out that Berklee College is in Boston. The news story on the US$10,000 Michel Camilo scholarship for Dominican pianists was correct, but the location of the college given was not, confusing it with the Berkeley campus of the University of California. As one reader pointed out, the two names are pronounced the same. Incidentally, contemporary music great Juan Luis Guerra is a graduate of Berklee College of Music in Boston. |
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