The Dominican Republic received US$677 million in direct foreign investment, according to reports in several papers. Danilo del Rosario, the director of the Dominican Investment Center, told the press that as of June the Central Bank had registered US$339.5 million in finalized investments, another US$181.9 million that was "in process," and a further US$155.2 million as "pending." While the CEI-RD director said the figures for 2003 will be below those of 2002, the country remains in fourth place for Latin America. Most of the investments were made in the areas of electricity, the financial sector, health, mining and telecommunications.
Canadian company Unigold promotes its Dominican Republic business as what it's all about, on its website at http://www.unigoldinc.com In its annual report, the company highlights that it began operations on 1 January 2003 and was established for the primary purpose of exploring, discovering and developing gold deposits on its 81,000 hectares of property held in Neita and Sabaneta, along the Haitian border. The company reported on 23 May 2003 that its aim is to find a gold deposit equivalent in size to the outstanding Pueblo Viejo gold mine (a Placer Dome concession), also in the Dominican Republic, which has produced over 5 million ounces of the precious metal since 1975 and contains an additional geological inventory of 30 million ounces of gold. Unigold explains on its website that it has no current operating income or cash flow, and its existence depends solely on its ability to obtain additional required financing. Regardless of its admittedly weak financial position, Unigold announced on 14 November that the Dominican government had signed a letter of intent regarding its acquisition of 100% of future revenues up to US$175 million in the abovementioned Placer Dome Pueblo Viejo concession. The future revenues would have been produced for the government given the agreed upon 3.2% "net smelter return" royalty on the Pueblo Viejo gold deposit earlier agreed upon with Placer Dome, another Canadian company. Local geologists and former Senate president Ramon Alburquerque have openly criticized the original Placer Dome deal signed by the Dominican government as being detrimental to national interests. Now the government seems to have gone one step further, promising to split the yet-to-be-had revenue 40/60 with the vastly unknown Unigold. In return, Unigold accepts to make payments to the government in the aggregate amount of US$42.725 million. The deal calls for US$21.3 million to be paid in cash upon the signing of a formal agreement between Unigold and the government, with the remaining 50% (or US$21.3 million) upon Placer Dome's announcement of a start date for commercial production. According to the Unigold press release, the formal agreement is expected to be signed by the end of 2003. Hoy newspaper reports, however, that Placer Dome has yet to set a date for the start of exploitation of its concession, which was also pending on the results of a feasibility study, as the site is still under evaluation by Placer Dome. On its website, Unigold mentions they will provide funds to the unknown Fundacion Cacique Inc, described as a non-profit organization formed to support and assist the Dominican people. Unigold commits to contribute US$5.58 million to the foundation, to be provided as US$2.58 million cash plus 500,000 shares of Unigold stock. This deal had not been made public in the Dominican Republic prior to the online publication of the document by the Canadian company carried in Hoy newspaper today. See http://www.unigoldinc.com/pressrelease200313.html
President Hipolito Mejia promised banana growers a RD$150-million line of credit at the Agriculture Bank (Bagricola) to restore the croplands destroyed by the flooding of the Yaque River. Torrential downpours in the northern section of the Dominican Republic produced flooding along all of the major rivers. The Yuna and the Yaque rivers were estimated to have carried more water than during hurricanes David and Frederick in 1979. While the Moncion Dam was not opened, the Tavera Dam was forced to unlock its floodgates, which contributed to the flooding. The French and German embassies handed over 20,000 food rations to the National Emergency Commission for distribution to victims of the flooding in the Yuna, Yasica and Yaque rivers. Dozens of volunteers from Civil Defense, the Red Cross and the United Nations could be seen packing the rations at the Carrefour commercial center. Ten thousand packages of food that did not need cooking were distributed one day and another ten thousand the next. Groups such as the Harley Davison Club and a civil aviation organization collaborated in the effort.
Hoy newspaper reported that a loan request made by the Dominican Republic to "bridge" the shortfalls in the electric sector and fulfill other obligations required by the IMF was denied. The idea of the "bridge" was to meet these obligations until the standby agreement with the IMF is signed and funds from other international monetary organizations start to flow into Dominican coffers. Marcelo Figuerola, the chief of the IMF mission to the DR, rejected the loan request and John Taylor, the Under Secretary for International Affairs at the United States Treasury Department, did not even acknowledge it. Apparently, the single condition for the loan was that the IMF agreement be signed. Nevertheless, this, in itself, seems to be a problem, as within the IMF Agreement there is a proviso for the creation of a Financial Emergency Law and a balanced budget for 2004, but the Government has not been able to identify the source of RD$6.5 billion it needs to balance the 2004 budget. According to Claudio Cabrera, writing in Hoy's economics and business section, other countries have received much better treatment, especially Mexico and Argentina.
According to the Listin Diario, the public payrolls are consuming 31.7% of all government expenditures. During the first 10 months of the year, government expenditures in investments reached 28.2%. This increase in salaries forced the current outlays to reach 71.8% of the budget for public expenditures, while capital expenditures stood at 28.2% for the 10-month period.
El Diario Libre reported long lines at propane stations across the country, especially in Santo Domingo. According to the article, a large part of the problem is that the government has not paid the subsidy to the propane wholesalers. The government has maintained the price of propane gas at RD$25.
The dollar dipped slightly on the exchange market, according to the Listin Diario, closing at RD$43 to US$1. The market was said to be "calm." Gasoline price also went down slightly on Saturday. After reaching record heights one week ago, the price of gasoline has fallen by about RD$1 per gallon across the board. Premium went down RD$1.63, regular was down RD$1.80 and diesel was down RD$1.18.
With the Duarte Bridge currently closed for repairs, motorists are having to take a slight detour. Previously, traffic had been permitted in the center of the bridge, but now all traffic is being redirected around the old structure. Public Works officials took the advice of engineers from the Conde-Mouchel consortium, charged with the repairs of the Duarte Bridge and devised the new plan. According to El Nacional newspaper, the bridge was built in 1955 during the Trujillo Era, was damaged in the Civil War of 1965, got a face lift in 1970, and in 1997 a complete re-fit was ordered. Since February of 1998, there have been 30 kilometers of new cables stored on the east side of the bridge at Calera. Reports are that the cables are now damaged.
El Caribe reported that the National Council of Busines (CONEP) suggested to the government that the electoral campaign and the internal political strife within the parties are of use to no one. Elena Viyella de Paliza, CONEP's president, told reporters that the crisis facing the various political parties is hurting the Dominican economy and impeding truly important programs from being implemented. According to Viyella, one of the major topics in question is the general welfare of Dominican citizens, in view of the fact that the economy is "oriented to promote investments and make the Dominican Republic more competitive." Her argument is based on the premise that while there is a stipulated timeframe for the electoral process, in reality it has been underway for some time now and is using valuable resources and hindering the decision-making process. Viyella strongly supported the letter from the Dominican Council of Bishops, which asked the government to put a stop to the deteriorating situation of the country.
El Caribe reports that the various political parties have spent in the neighborhood of RD$53 million on publicity since the beginning of September. The PRD, even without an official candidate to promote, has spent nearly RD$28 million. The PLD has spent RD$13.2 million on its campaign to date and the PRSC has spent nearly RD$12 million. In an interesting sidebar, El Caribe shows that Vice-President Milagros Bosch has out spent President Hipolito Mejia by RD$1,657.
The Central Electoral Board (JCE) traveled to Santiago to meet with Monsignor Agripino Nunez Collado, who had resigned as the head of the Watchdog Commission designated during the National Dialog debates last year. Monsignor Nunez chose to leave the post because of the manner in which new personnel had been contracted by the JCE. During their conversations over the weekend, Nunez Collado said that the JCE members presented a new attitude "that he could appreciate." Apparently, the placement of Fralklin Frias as the head of the Computer Department was a key element for the resolution of the crisis. The full board will meet today, Monday, to discuss other staffing issues. In the Listin Diario, the JCE's top official, Luis Arias, defended the honesty and professional capacity of several of the technicians, especially Gilberto Cruz Herasme, who has worked at the JCE since 1995.
El Caribe reports that the municipal council for Santo Domingo North has opened bidding for a new administration to invest US$100 million in the cleanup of the Duquesa landfill waste disposal area. The new environmental laws require a much-needed modernization of the facility, which receives 3,200 metric tons of waste every day. While the site has many urgent needs, it also has a sizeable income from Santo Domingo West, Santo Domingo East and Boca Chica, municipalities which each have to pay RD$550,000 per month for waste disposal service. US Federal Aviation Agency inspectors have conditioned their giving green light for flights into the new La Isabela International Airport to the closing of the nearby dump that attracts hundreds of birds to the area.
El Caribe reports that infant mortality rates in the Dominican Republic have gone down over the last five years, although 38 per 1,000 of all live births will die before five years of age. Overall, 3% die in the first few months of life. Other indicators show that only 13.3% of infants are exclusively breastfed, and 69.8% of the women interviewed use some form of family planning, up 5.1% from 1996.
Facing possible imports of 900,000 hundredweight of rice, the president of the Dominican Federation of Rice Growers, Fernando Valero, rejected the need to increase the price of the cereal or import any from abroad. According to the Fenarroz president, there is enough rice in storage to satisfy the national demand for the staple until March. Valerio did admit that the massive flooding of the low-lying rice fields was a step backwards, and would delay the planting schedules of the crop that normally is harvested in late March or early April. Valerio said that while this is an inconvenience, there was no need for the public to worry about the supply of rice. Meanwhile, green peppers are exceedingly scarce and very dear, according to the Diario Libre, which says the price of the vegetable so popular in Dominican cuisine has skyrocketed from RD$8.00 a pound to RD$64.95. The recent rains damaged the harvest to cause this incredible price hike.
The Washington Post published a 30 November update on how the Dominicans have suffered a reversal in fortune, going from being the Caribbean's fiscal role model to a nation whose population is suffering from spiking inflation. http://www.washingtonpost.com/wp-dyn/articles/A21569-2003Nov29.html
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