DR1 Daily News will not publish an update tomorrow, Wednesday, 24 September, in view of the national holiday to commemorate the Day of Mercedes, the DR's patron saint. The news of the day will be compiled for the Thursday, 25 September issue. Those seeking breaking news or updates on Monday's earthquake can follow postings on the DR1 Forums that operate 24 hours a day, 365 days a year. See http://www.dr1.com/forums for the updates.
The National Wages Committee approved an increase of 25% in the non-sectorized employee minimum wage. The adjustment would come in two parts: 15% effective October, and 10% as of 1 January. This would bring the monthly minimum wage for companies with assets of more than RD$500,000 from RD$3,890 at present to RD$4,475. As of January, the minimum wage would be RD$4,920 for larger companies. The obligation to increase the minimum wage goes into effect 15 days after the resolution is published. The committee must now rule on rates for the free zone manufacturing companies, tourism industry, and other sectors that have separate wage categories. Smaller companies are authorized to pay a RD$3,000 monthly minimum wage as of January, up from RD$2,295 at present. Once minimum wages are adjusted, those who earn wages above the minimum levels usually receive an increase, although the exact amount is determined by the individual company and is not enforced.
President Mejia is in Amsterdam today, where he will be received by Queen Beatrix, who spent last Christmas in the Dominican Republic. El Caribe reports that this visit is the last stop of his tour that began 12 September and on which Mejia was received in Spain, Israel and Jordan. His 24-hour stay in Holland will include a boat tour of Rotterdam and a visit to the ceramics museum in Amsterdam, as well as a floral offering at the hometown of the late Prince Klaus, who once lived in the Dominican Republic and is remembered for his support of the anti-Trujillo movement. Mejia will also meet the Dominican community in Holland.
President of the Senate Jesus Vasquez Martinez announced that a US$54-million credit was obtained from Israel for the construction of the Nagua aqueduct in the province of Maria Trinidad Sanchez and that separate funding of US$45 million from Denmark would finance Nagua's sewage drainage system. The works would be completed over a two-year period, according to a report in El Caribe. Vasquez recently accompanied President Mejia on his trip to Israel, where it was reported that the President had dinner at the home of Israeli businessman, Yosef A. Maiman, the purported sponsor of the projects. According to the Israeli company's website, Merhav is already carrying out "a $100-million project in the Dominican Republic sponsored by INAPA - Dominican's National Institute of Potable Water and Sanitation, and supported by leading world financial entities, to provide a large area with an advanced potable water system, providing modern sewage and treatment facilities." The Merhav Group describes itself as specializing in emerging economies and states that projects worth US$3 billion are being carried out and additional projects worth US$5 billion are being assessed.
More than 30 deputies of the southern provinces requested that President Hipolito Mejia rescind the contract signed with the Consorcio Vial Dominicano for the US$85-million construction of the San Cristobal-Bani highway. The concession was signed two years ago with the little-known company and established that the Dominican government awarded the right to collect tolls for 25 years. Multilateral organization funding had been secured for the expansion of the highway, but was turned down by the Mejia administration, preferring instead the modality of concession. The contract, according to a report in Hoy's Sunday, 21 September issue, had a 24-month term for its implementation. Hoy newspaper reports that the reason for the failure of the San Cristobal-Bani concession, and most concessions granted by the Mejia government in general, is that many of the concessionaires are well-connected, but insolvent businesspeople, whose scheme is to resell the contracts. Other concessionary works that have not been started or been abandoned are the San Cristobal-Duarte Highway, the railroad from Haina to Santiago, the San Pedro de Macoris-La Romana highway, the extension of the Maximo Gomez Avenue, and the Samana highway.
Hoy newspaper says that talks are underway for Trinidad to step in and supply the fuel the country needs. Venezuela suspended its petroleum sales to the DR under the cloud of allegations that former Venezuelan President Carlos Andres Perez is conspiring against President Chavez from Dominican soil. Hoy reports that the president of the Dominican Petroleum Refinery, Amaury Justo Duarte, will travel to Port of Spain on 29 September to participate in these discussions. Trinidad would offer the DR a similar deal to the San Jose Accord signed with Venezuela. DR was Venezuela's best client in the Caribbean, purchasing 100,000 barrels daily, according to Diario Libre.
Vice-President Milagros Ortiz Bosch said that the reconstruction of schools affected by yesterday's earthquake in Puerto Plata would cost more than RD$50 million. She said that 18,000 students are without classrooms due to the damages caused. The schools affected are the Liceo Gregorio Urbano Gilbert (Plan Reforma), Jose Dubeau and the Escuela Virginia Ortea in Puerto Plata. Fortunately, the earthquake hit at 12:45am, thus no one was hurt by the collapse of several areas of the public schools. The considerable damages sustained at the schools have led news commentators to question the construction practices of public schools and their safety. In addition to Puerto Plata schools, otheres in Villa Vasquez and Guayubin (Monte Cristi province) Villa Mella (Province of Santo Domingo), San Francisco de Macoris (Duarte province), Moca (Espaillat province), Maria Trinidad Sanchez and Azua were significantly damaged. On a positive note, news reports say the school breakfast program has begun nationwide.
The Civil Aviation Board reports that operations at Dominican airports are normal. According to Carlos Alvarez Guzman, director of the airports department, both the Cibao and Puerto Plata international airports show primarily minor cracks in the glass of their control towers. The runways were not affected and landing and takeoff operations quickly returned to normal yesterday following the 6.5 earthquake.
Experts at the Dominican Association for Mitigation of Disasters had been expecting a 7.8 earthquake, prompting the question now of whether yesterday's 6.5 quake was the one waited for, or if another one could be on its way. Following the initial and largest tremor on Monday at 12:45am, there were aftershocks of 5.1 (1:30am), 4.4 (6:58am), and 4.7 (8:39am). El Caribe newspaper interviewed California geologist Jeff Bachhuber, who believes the 6.5 earthquake was of moderate intensity and that the region may still receive greater ones of magnitudes of 7 or 8. Carol Prentice, professor of geology at Humbolt State in California, who said: "No way is the recent earthquake the biggest possible for the DR. It was a moderate one and we know that some day a greater one could happen." Chronology of Dominican earthquakes: Nagua (northeast) - 4 August 1946 - 8.1 magnitude Santo Domingo (south) - 4 December 1961 - 6.6 magnitude Azua (southwest) - 11 June 1971 - 6.0 magnitude Salinas/San Cristobal (southwest) - March 1993 - 5.2 magnitude Cibao. (central/north) - April 1993 - 5.7 magnitude San Francisco de Macoris - June 1993 - 5.1 magnitude Puerto Plata - September 2003 - 6.8 magnitude El Caribe newspaper reports that history reveals that there were very destructive earthquakes before 1946 taking place in 1897, 1842, 1751, 1761, 1673, 1665, and 1562. For those who want to get the technical explanation on the most vulnerable areas of the island, a PDF document produced by an international conference that studied the geological phenomenon affecting the Dominican Republic is available to download. See http://www.ig.utexas.edu/research/projects/caribbean/publications/penrose/penrose_fg.htm
Earthquake specialist and engineer, Rafael Corominas, proposes the construction of a 200-kilometer-long park over areas lying above the Septentrional fault. In an interview with Habitat magazine, Corominas, one of the leading earthquake experts in the DR, urged that Santiago develop the areas south of the Yaque River, moving away from the fault zone. In the magazine article, he also says that construction alongside the park should incorporate earthquake-prone standards. Corominas alerted that in the case of homeowners in the fault area whose properties are damaged, insurance companies will only compensate the financier, and the homeowners will have lost their investment. He criticized that high-rise towers are being built without walls on the first floor, in order to gain space. He says the earthquake in Turkey showed that this structure is the most prone to disastrous collapse. Little by little, said Corominas, all sectors in the country are becoming more aware of the importance of building to earthquake standards.
Scotiabank announced last week that it will proceed with the purchase of 39 branches and the hiring of 460 employees of the intervened Baninter, a move that will make the Canadian institution the fifth largest private bank in the country. Peter Cardinal, Scotiabank's executive vice-president for Latin America, said, "This announcement underscores our ongoing commitment to the Caribbean and Central America, a region where our presence is already twice that of our nearest competitor." In the transaction, Scotiabank will also take over select credit card accounts, and personal and commercial loans. The acquired branches will be converted into Scotiabank locations over the next three months and will complement the bank's existing 20-branch Dominican network. Scotiabank is not assuming any of Baninter's liabilities, but will be working with customers who held Baninter deposits, and offering them Scotiabank accounts, if they choose. Jim Meek, Scotiabank's senior vice-president and general manager in Santo Domingo, said: "We've been doing business in the Dominican Republic for more than 83 years and this announcement opens an exciting new chapter in the Bank'shistory - enabling us to play an active role in communities right across the country." See http://www.scotiabank.com/cda/content/0,1608,CID54_LIDen,00.html
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