|
|
|
|
|
|
|
|
|
Mejía announces deal with Unión Fenosa President Mejía announced yesterday that the government had reached an agreement with Spanish company Unión Fenosa and would therefore be taking back control of that company’s power distribution responsibilities in the Dominican Republic. Speaking at the Presidential Palace, President Mejía said the decision was reached after the two Unión Fenosa affiliates proved themselves unable to do what was asked of them -- improve power service. In his speech to the nation last night, the President stated that “the capacity of the Dominican people to put up with things is admirable." The “things” to which he was referring are the high cost of electric service, poor quality of the service, and the constant blackouts served up by the company to consumers in this country. Hoy newspaper cites sources that have indicated that Unión Fenosa would recover the US$700-million purported investment, of which US$500 million is attributed to Ede-norte and Ede-sur and US$150 million to the power generator. One of the negotiators for the government, Finance Minister Rafael Calderón, said that Unión Fenosa keep its generation plants in the DR until they have been paid for, while the government would buy out its power distribution companies and transfer their operation back to governmental technicians until a tender is held for its subsequent re-privatization As a result of the Madrid Accord signed by the Mejía government, generation companies have been benefiting from the fixed prices that guarantee profitability and accelerated returns on investments to power plants in the DR. President Mejía said that details of the negotiations would be forthcoming. President Mejía will travel to Madrid this week, having accepted an invitation from the Spanish King and Queen and Prime Minister José Aznar. Once arrived, news sources had said he would meet with top executives of Unión Fenosa. Unión Fenosa’s board of directors had requested the assistance of Prime Minister Aznar to resolve their differences with the Dominican government. For a better understanding of the power problem in the Dominican Republic, see http://www.dr1.com/news/2003/082803_electricity.shtml |
|
Union Fenosa reports on deal Unión Fenosa reported in Spain that it had reached an agreement with the Dominican Republic to transfer its 50% holdings of power distribution to the Corporación Dominicana de Empresas Eléctricas Estatales (CDEEE), co-owner of Ede-norte and Ede-sur. The Dominican government agreed to pay 384.3 million euros for their share of the operation. The deal reportedly includes the cancellation of all credits and obligations the distributors held with Unión Fenosa and its affiliates through 31 August, and would compensate for what the company called a “substantial” contribution to the net investment. The arrangement would be finalized on 30 September, at which time a cash payment of 13.3 million euros would be made. Also included is the transfer of Unión Fenosa assets to another affiliate of the company in the Dominican Republic, Distribuidora Dominicana de Electricidad (DIDOEL), which would lease the Ede-norte and Ede-sur assets for a period of 12 years. Unión Fenosa says revenues of the operation would be used to cancel commercial debts of the distributors with the Palamara and La Vega generators to the tune of just over 100 million euros. The funds would also pay for loans made to the company by the Interamerican Development Bank and other financial entities for 170 million euros. The remaining 100 million euros would recompense the company for the net investments it claims having made. For more on the Unión Fenosa deal, see http://www.labolsa.com/noticias/20030911171220/ |
|
Mejía to visit Israel, Jordan & Iraq? Hoy newspaper reports that Dominican government officials have begun diplomatic procedures for President Hipólito Mejía to stopover in Iraq following his tour of Spain that starts this Friday, 12 September. The newspaper says that Mejía would make stops in Israel, Jordan and Iraq. Sources at the Presidential Palace are quoted as saying that the purpose of the visit would be to motivate the 300 Dominican soldiers currently in Iraq. President Mejía would reportedly travel on a private plane from Amman, Jordan to Diwaniya, the south-central area of Iraq where the Dominican troops are stationed. In Israel, President Mejía would tour Jerusalem, meet with President Mosche Katsa, Prime Minister Ariel Sharon, chief of the opposition party Shimon Perez, and the Israeli agriculture minister. Mejía would also visit Parliament and the Museum of the Holocaust. The report says that while President Mejia will travel to Spain on Air Europa, once in Spain he would make use of a private jet, property of H. Ben-Ezra, to travel to Tel Aviv on 17 September, remaining there until 18 September. The Presidential Palace has not yet issued a statement on details of the trip abroad. Listín Diario reports on its front page today that the government has plans to send 30 police agents to join the Dominican army’s troops in Iraq. |
|
Royal accommodations for Presidential delegation During his visit to Madrid, which begins Saturday, 13 September, President Hipólito Mejía will be staying at the Royal Palace (Palacio Real de El Pardo) as the special guest of the King and Queen of Spain. According to Hoy columnist, Manuel Jiménez, in addition to First Lady Rosa Gómez, others to accompany the President at the palace will be: Felipe Mejía Gómez (the President’s son) and his wife Nancy Handal. Carolina Mejía (the President’s daughter) and her husband Juan Garrigó. Jerry Dupuy and his wife Apolonia Barceló. The Dominican Ambassador to Spain, Augusto Vega Imbert, and spouse. Technical Secretary of the Presidency Carlos Despradel and spouse. Major General Carlos Díaz Morfa, chief of presidential military corps. Press director Luís Gonález Fabra. Ambassador Fausto Sicard Moya. Ambassador Danilo del Rosario, director of the Center for Exports and Investments (CEI-RD). Victor González and spouse. |
|
DR-US FTA bilateral negotiators President Hipólito Mejía yesterday named the Dominican team that is to negotiate the Free Trade Agreement with the United States. The scheme followed by the Dominican government means the DR will dock its agreement to the accords reached between Central America and the US. Decree 864-03 establishes that Industry & Commerce Minister Sonia Guzmán will head the Dominican team, with other members to include Orlando Jorge Mera, president of the Dominican Institute of Telecommunications; Carolina Mejía, daughter of President Mejía and coordinating ambassador for Free Trade of the Americas and other bilateral trade agreements at the Ministry of Foreign Relations; as well as various representatives of the National Council of Free Zones, the Ministry of Finance and the Office of Industrial Property, and others who have yet to be appointed. The decree establishes that the Industry & Commerce Ministry will coordinate efforts between the Oficina Especial para la Negociación del ALCA, the special office for FTAA talks (created by the same decree), and the officer in charge of trade negotiations, Santiago Tejeda, at the Ministry of Foreign Relations. This office was formerly responsible for such trade negotiations. Early this year, the Mejía government replaced its entire team of trade negotiators. |
|
Economic update Central Bank Governor José Lois Malkum, speaking at a luncheon of the Asociación de Comerciantes e Industriales de Santiago (ACIS), the leading Santiago business organization, said yesterday that the Gross Domestic Product for the Dominican Republic declined 0.8% during the first half of the year. He attributed this to downward shifts in the industries of commerce (-15.4%), transportation (-9.8%), farming (-7.2%), non-free zone manufacturing (-6.7%), and construction (-3.7%). Sectors that experienced growth during the first half of the year were tourism (up 33.6%), mining (20%), communications (15.4%), and free zone manufacturing (5.8%). He said that national goods exports grew 21.8% during the first half of the year and free zone exports were up 6%. According to Malkum, tourism revenues were up 18% and remittances increased by 6.5%. Inflation through August is reported to be more than 24.6%. |
|
Currency controls would violate IMF accord The Association of Commercial Banks of the Dominican Republic (ABCRD) and the Association of Foreign Exchange Remittances Houses (ADREDI) protested the bill to modify the Monetary Law passed by the Senate yesterday. The changes still need the approval of the Chamber of Deputies. The two organizations say the proposed changes violate agreements signed with the International Monetary Fund. Freddy Ortíz, spokesman for ADREDI, as quoted in the Diario Libre said, “Articles 20 and 21 of Chapter 6 of the Agreement with the IMF hold the government to free exchange convertibility and a floating dollar. The Dominican government pledged to pass all hard currency transactions to the private sector before the end of 2003.” The stand-by arrangement with the IMF, as announced at the end of last month, established that the flexible exchange rate system was to be strengthened and full integration of the dual exchange rate markets was to be expected by the end of the year. |
|
Mexico to supply more fuel Diario Libre reports that Mexico will fill the gap in fuel supply caused by problems with sourcing from Venezuela. The newspaper explains that the Dominican-Mexican governmental commission revising the San José Pact that covers Mexican petroleum supplies has agreed to authorize Mexican financing for Dominican exports to Mexico under the preferential terms of the pact. The DR is buying considerably more fuel from Mexico after supplies from Venezuela were recently interrupted. |
|
Trucks for the deputies Hoy newspaper’s page-two “Coctelera” column baulks at the fact the Chamber of Deputies had used its budget, funded by taxpayers, to purchase 115 vehicles, most of which were luxury SUVs, to be assigned to deputies and others favored with personal influence in the Chamber. The columnist says that such dealings have effectively turned the Chamber into a kind of car rental service and wonders about the trucks on the lists and whether the deputies weigh so much they now need heavy vehicles for their transportation. The 115 vehicles are in addition to the two vehicles the legislators are authorized to import duty free during their four-year term. |
|
Baninter board secretary released Jesús Troncoso, secretary of the board of directors of intervened bank Baninter, was released from detention by Judge Eduardo Sánchez yesterday. Judge Sánchez is in charge of the case against the bank executives for fraudulent operations and asset laundering. |
|
APAP board stays in the family The Listín Diario newspaper reports that members of the Asociación Popular de Ahorros y Préstamos (APA) who resigned have been replaced by relatives of the former secretary general of the board. To comply with a Monetary Board resolution that establishes there should be no blood relations between bank board members, Azor Hazoury, Ricardo Pellerano and Miguel Pimentel Kareh gave up their positions on the board last Friday. The Listín reports that Azor Hazoury, however, was replaced by his daughter, Mari Angela Hazoury, Ricardo Pellerano was replaced by his brother, Rafael Pellerano (who is married to Mari Angela Hazoury), and Alejandro Fondeur (the husband of Azor Hazoury’s niece) will take the place of Miguel Pimentel Kareh. The Listín says that other board members include Eliseo Fernández, married to Azor Hazoury’s daughter; José Fernández, Eliseo Fernández’ brother; Luís López, Ricardo Pellerano’s business partner; and Lawrence Hazoury, Azor Hazoury’s nephew. The APA board’s president, Héctor Mateo, along with members Ligia Bonetti de Valiente, Pedro T. Esteva Troncoso and Mónica Armenteros de Torrón, had previously contested Azor Hazoury’s attempts to merge the loans and savings association with Baninter. |
|
Agua Cristal shut down Agua Cristal, one of the leading vendors of the five-gallon bottles of purified water, received an order for it to close its operations yesterday from the Environment Ministry. This decision comes after four years of legal battles led by neighbors offended by the high noise level and other environmental contamination caused. The order was issued by the Procuraduría de Medio Ambiente, effective yesterday. |
|
Isabel forecast to pass well north of DR The latest forecasts from the Hurricane Center in Miami put Hurricane Isabel, a Category-4 storm, slightly further north than originally estimated. The storm is expected to travel off the North Coast of the Dominican Republic during the day on Monday. Currently centered at 1,559km (968 miles) east of the Samaná peninsula at 21.4N and 54.5W, Isabel has sustained winds of 242kph (150mph), with gusts as high as 298kph (185mph). The central pressure in the hurricane's eye has dropped to just 930mb (27.45in), shifting to the west at 14kph (9mph). In spite of this westward tendency, satellite photos depict a classic-looking that may be expected to shift slightly and increasingly northward beginning later today. Official projections place the storm about 885km (550 miles) off North Coast beaches from 8am AST Sunday through 8am AST Tuesday. If the forecast holds, the north of the country will experience 12- to 18-foot high waves at the shore but be spared most of the rain and wind associated with hurricane conditions. See, http://www.dr1.com/forums/forumdisplay.php?s=&forumid=34, for the latest DR1 weather links and discussions on Isabel. |
|
|
|
The contents of this webpage are copyright © 1996-2008. DR1. All Rights Reserved. |
