The government has given in to the International Monetary Fund's demand that they be allowed to look into the acquisition of the electricity distribution companies known as the "Edes". Hoy newspaper leads with a report which quotes Finance Minister Rafael Calderon as saying that this consent should rapidly re-establish normal relations with the IMF, which had withdrawn its delegation from the country in the wake of the government's decision to renationalize the electric companies. Upon this withdrawal, it also suspended all disbursements of funds, leading to fears that the standby agreement was in peril. Dominican and IMF experts will now look into the fiscal implications of the takeover of Ede-Sur and Ede-Norte, said Calderon. President Hipolito Mejia had authorized a letter of invitation to the IMF, asking them to return to the DR at the "next convenient date" for this purpose. Calderon said that no new IMF measures, such as new taxes or tax increases, would be necessary as a result of the deal, which in his opinion would reduce rather than increase the government's expenditure. Calderon also admitted that the Central Bank's reserves were at a low level, but that this was a temporary circumstance and within the IMF parameters. He defended the CB's decision to liberalize the exchange market, expressing his belief that the real dollar-peso rate should stand at no more than RD$28 and that this view was shared by the export and free trade zone sectors. US dollars were being exchanged for more than RD$33 yesterday.
The national energy committee met yesterday to discuss its options for the next phase of the energy sector reform, revealing a "war of interests" over how the new deal will be carved up. Representatives of the sector were present, as were officials from the government, generators, co-generators, distributors, and consultants from the US, but - as El Caribe newspaper points out - consumers were conspicuously absent. Antonio Almonte Reynoso, president of the national energy committee, disclosed that USAID had a plan for the system's reform, which would include a three-month consultation with international and local experts to review the possibilities and draw up a strategy. Power supply company Ede-Este's Manuel Lopez San Pablo pointed out some of the "distortions" in the current market, citing the fact that the generators used subsidized or tax-exempt fuel, and describing the inefficiencies in the supply system, despite the fact that it is "totally capable of supplying energy". Las Terrenas' electricity company is one of the so-called "co-generators", signifying a company that both generates and supplies electricity. Its representative, Orsini Bosch, suggested a way to end fraud and non-payment, as did Jose Manuel Paliza of the generating company Monte Plata Power Plants, who asked whether any reform would be necessary if everyone paid for their electricity. Ramon Cruz of the Superintendence of Power remarked on certain price aspects that are not transparent and the effects this has on the consumer, who pays a very high price for consumption. Cruz mentioned that the CDEEE is buying in the spot market at US$0.095, when the contracts establish a price of US$0.072. "Who is getting the difference?" he asked. Cesar Sanchez, who heads the CDEEE (state electricity company), did not speak at the meeting, although he was present.
CDEEE president Cesar Sanchez announced that although British- and US-owned electricity generation company Cogentrix had been warned to renegotiate its contract with the government, it had not done so to date. The next step, he warned, would be legal action. For its part, Cogentrix spokesman Greg Osadetz said that they had on two occasions sent a proposal with key negotiation points to the authorities, but had received no reply. Osadetz remarked that he did not understand Finance Minister Rafael Calderon's statement that the government would not pay its US$18-million debt to the company until a revised sales contract was in place. He added that the British government would protect its most important investment in the Dominican Republic, and that he had written to President Hipolito Mejia explaining all these points.
The Listin Diario and Hoy report today that the CDEEE suspended power service to the Ministry of Sports, in view of a pending RD$9.5-million debt to their power distributor. The ministry has not paid for service over the past year. Sanchez told the newspaper that this is an example of the distribution companies' new policy following the renationalization of the Union Fenosa distributors. It is well known that governmental offices and departments are among the most delinquent of the distributors' clients. Sanchez said that the government departments should set an example.
Last week's meeting in New York between the Venezuelan and Dominican foreign ministers, although described as positive, did not produce the expected outcome. Rafael Ramirez, the Venezuelan energy minister, announced yesterday that his country would not resume oil exports to the Dominican Republic until his government had received a "satisfactory reply" to the questions regarding allegations that Dominican authorities allowed the Venezuelan opposition, headed by former President Carlos Andres Perez, to plot a coup against President Chavez from Dominican soil. "Dominican territory is being used in a public and notorious manner for hostile acts against the Venezuelan government," said Ramirez, as he also reiterated President Chavez' allegation that certain Dominican companies, including companies based in the Dominican Republic with links to the oil industry, were funding such actions. According to the energy minister, this violates the San Jose treaty, under which Venezuela supplies oil to the Dominican Republic and other countries in the region on preferential terms. Making his regular appearance on the Sunday night television show "Una vez a la semana", President Mejia refused to discuss the matter, saying "I don't deal with diplomatic affairs on television."
During yesterday's weekly economic meeting, President Hipolito Mejia instructed the Treasury to start the process of preparing checks for the annual double salary payment to public employees in the first half of December. National Treasurer Pastora Mendez de Fondeur said that this year there would be no problem with the payment, which is made to all public employees, police officers, military personnel and retired members of these institutions. The funds had already been budgeted for, she said. Last year, the government paid out RD$2.6 billion in Christmas salaries.
The Mejia administration has at least 52 inconditional deputies. A vote was called yesterday for the passing of a bill presented by the Executive Branch that would authorize the government to take on more debt -- RD$5.1 billion in domestic bonds. The bill received 52 yes votes from the 118 deputies present (of a total 150 deputies). 66 deputies voted to instead send the bill to a study commission. Agriculture Minister Eligio Jaquez urged deputies to pass the bill arguing it was of great importance to the farming sector, and that most of the money would be used to pay for purchases of food products made over the years by the government to farmers.
El Caribe reports on a joint study by the Inter-American Development Bank (IDB) and the Dominican government that urges improved preventive measures for natural disasters rather than regret after the event. The research comprises 2,000 natural disasters of major and minor proportions between 1966 and 2000. Most common are fires and floods, and most serious are hurricanes, but the report recommends that small- and medium-scale disasters, including drought and epidemics, be given more attention as their effects could be as serious as the more dramatic events, such as hurricanes David (1979) and Georges (1998). The aim of the survey was to provide a basis for designing a national risk-management strategy, including systems for effective disaster prevention, mitigation and response. The researchers warn that "according to some projections, the Dominican Republic's population is set to double in a short period of time, dramatically increasing its vulnerability, the risk of continuing poor public order and the difficulties in providing public services." This can only be prevented with "the incorporation of prevention criteria in physical planning (urban and territorial) and in sectoral and socio-economic planning." The 522 fires recorded over the last 35 years can largely be attributed to the deficiencies in the power generation and supply sectors, caused as they are by electrical short circuits and the use of candles during power failures. Many of the floods recorded during the same period could have been prevented through better management of dams and river systems, as well as drainage installations on land. Many epidemics (including dengue fever, TB and measles) are preventable through vaccination or clean water and sanitation systems.
Last month's earthquake caused RD$160 million worth of material damage to public, private and commercial premises in the northern city of Santiago, and has left between 170 and 200 families homeless, according to Edwin Vargas of the northern branch of engineers' association CODIA. The Red Cross has warned people not to stay in damaged houses, which could be brought down by future tremors. Affected families in poor neighborhoods have protested, however, that no official help has come their way. Aridia Altagracia Grullon, a widow with eight children, told Hoy newspaper that she had lost everything she owned. Another woman quoted in the article said that people were relying on friends and neighbors for help and temporary accommodation. The earthquake also caused serious damage in the coastal town of Puerto Plata and the surrounding area.
In a study based on the US census of 2000, Dominicans are the fourth largest minority group of Latino origin in the country as a whole, and the second largest in New York City. Mexicans comprise by far the largest group, accounting for 58% of the total Hispanic population, followed by Puerto Ricans with 10% and Cubans with 3%. Dominicans make up 2% of the total US Latino population. The research, which was carried out by the CUNY (City College of New York) Institute of Dominican Studies, found that the Dominican community in New York City could soon overtake Puerto Ricans as the largest minority community of Latino origin, and the nationwide Dominican population could replace the Cubans as the third largest in the US as whole. The study also found that although Dominicans on average earned some of the lowest incomes in the country, their standard of living had generally improved. The second generation was attaining good educational results, according to the report titled "Moving to the US, Buying Your Own House, 1994 - 2000". Of all naturalized Hispanic immigrants, 63% own their homes, says the report, which also inspired a column on the newspaper's editorial page and the remark that the 2000 census revelation that there are 765,000 Dominicans in the US points to the "flawed" design of the census questionnaire. "It is clear that they were not counted properly", says the editorialist, alluding to the well-known fact that there are many more Dominicans in the US than those recorded officially. The writer comments that New York politicians have been astute in courting the votes of the Dominican community, and that new generations with higher levels of education are also beginning to participate in politics and to take more control. "They are making their mark in the fields of politics, science, economics, sports and professionally, without losing the roots which allow them to have an identity. They are a source of pride for us all."
All events scheduled for this week and next will have to compete with US Major League baseball for many people's attentions. Wherever one is, from Monte Cristi to Higuey, it seems there is a radio or TV nearby, tuned in to see Pedro Martinez, Manny Ramirez, or David Ortiz as they make their star appearances for the Boston Red Sox in the Major League American League finals. Competing against Boston are the New York Yankees, where Dominican infielders Alfonso Soriano, Erick Almonte and Enrique Wilson will go to bat. The National League is no exception, as Sammy Sosa, Moises Alou, Aramis Ramirez, and pitchers Juan Cruz and Antonio Alfonseca of the Chicago Cubs grab the attention as they face their Dominican compatriots Luis Castillo and Jose Encarnacion of the Florida Marlins. The Dominican ball players are inspired and inspiring. In last night's game, both Sammy Sosa and Aramis Ramirez batted homeruns for the Cubs, contributing to that team's 12-3 win over the Marlins. Boston's Ortiz and Ramirez received standing ovations when they slugged three homers and led the Red Sox to win 5-2 in their first match-up against the Yankees.
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