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Archive News

EdeEste restores power in Haiti

The Dominican government-owned EdeEste power distribution company has restored power service in Haiti. The substations and electric transmission lines had been destroyed during the 12 January earthquake. The company reports that the service was restored in record time, given the magnitude of the damage. The company says that now that power has been restored, businesses will be able to resume their operations.
4 March 2010 - DR1 Daily News

Metal export company shut down

The Department of Customs (DGA) has announced the suspension of operations at Caribbean Recycling, a Swiss capital firm that exported metal, as reported in Diario Libre. The company is located in the Los Alcarrizos Free Zone. Company general manager Juan Gomez Burns told Diario Libre that he denied illegal sourcing, saying that the material was purchased from a company that operates in Punta Cana, and from Haiti.
The company's operations are suspected of illegal purchase of cables and wiring stolen from telecom companies for conversion to copper for export to China.
Gregorio Lora Arias of the DGA said that during a visit to the company, 25 tons of copper was found at the free zone and at a depot at Haina Oriental prior to export to China. Lora said that a ton yields US$4,000 on the international market. He said that they also found antennas similar to those used by local telecom companies. He said the company would remain closed until a DGA investigation is completed.
Lora Arias said that 38 scrap metal export firms in the country are under investigation in order to distinguish between theft and genuine scrap metal operations.
Yoneidi Castillo, director of the Association of Telecom Companies (Adomtel) said that there have already been 160 thefts of telecom wiring affecting telecom companies in 2010. Tricom alone reported 95 cases. She said in addition to wiring, the companies have also suffered theft of antennas, power plants and other equipment. She praised the efforts of the authorities to combat this crime.
4 March 2010 - DR1 Daily News

Trade with China

The Dominican Republic is ranked second behind Cuba in the Caribbean when it comes to trade with China. The DR exports ferronickel, scrap metal, rice, tobacco, cacao, coffee and bananas to China. Imports include machinery, tools, metal utensils, vehicles, motorcycles, textiles, apparel, school supplies, cell phones and computers. Trade between both nations grew from US$150 million in 2003 to more than US$800 million in 2009, Luis Gonzalez writes in Listin Diario. He makes the point that these figures do not include trade with Hong Kong and Taiwan that is tallied separately.
He writes that the Chinese are drinking more and more coffee, so prospects for increasing exports are there. There is also potential for increased exports of rum and tobacco.
Eddy Martinez of the Center for Exports & Investments (CEI-RD) says that there is only an Office for Trade Development for the DR in Beijing and not a full embassy, and this is an obstacle to increased trade. He said that many products were shipped via Panama.
4 March 2010 - DR1 Daily News

Bad timing for sovereign bonds issuing

Economist Bernardo Vega says that the government has waited for the worst moment to place US$1 billion in sovereign bonds. The former governor of the Central Bank said that a month ago, the interest rate would have been 8%, but now it will be more due to the chilling effects of the financial crisis in Greece on investors.
He complained that the Fernandez administration continues to source expensive international financing like this sovereign bond placement. He urged the government to consider the long-term implications of that debt, including the percentage of government revenues that will be have to set aside to pay for this. He said that already this year, 40% of tax collections have been assigned to pay for the foreign debt.
Speaking on Huchi Lora's Channel 11 El Dia TV program yesterday, Vega expressed his concern about the financing of the second line of the Santo Domingo metro. He commented that it appears that contrary to what the President had said initially, private investors have not shown interest and the government would continue with the construction of the second line of the Santo Domingo metro following the scheme of the first line - international borrowing and using tax revenues.
4 March 2010 - DR1 Daily News

US$1billion in sovereign bonds

The Senate moved last night on the bill aimed at authorizing the President to issue up to US$1 billion in sovereign bonds. The bill says the funds are intended for public infrastructure work. The bill was approved with a minimum of 17 ruling party PLD senators and one PRSC senator.
The PRD senators left the session in protest at the pressure to expedite the bill, saying that it should have been sent to commission for study given its impact on the economy. Senate president Reinaldo Pared Perez and the Hacienda and Budget Commissions chairmen Tommy Galan and Dionis Sanchez said that the President had sent the bill to Congress in July 2009.
The Senate also approved three foreign loans totaling US$121.4 million for the construction of the Guaigui dam and water projects on the Camu River. The Senate also authorized the government to borrow US$43.6 million to equip the Centro Comprensivo del Cancer at the Heriberto Pieter Hospital.
4 March 2010 - DR1 Daily News

Selling to Haiti

Foreign Relations Minister Carlos Morales Troncoso has opened the first workshop for Dominican suppliers interested in working on the reconstruction of Haiti with the participation of the United Nations, the Mission for Stabilization of Haiti (Minustah), Dominican ambassador in Haiti Ruben Silie, and the Dominican ambassador at the UN in New York, Federico Cuello, among others.
A total of 230 Dominican companies registered for the conference. Morales highlighted the fact that companies from all around the world will be bidding in the tenders convened by the United Nations and Minustah to supply the goods and services needed for Haiti's reconstruction. Morales Troncoso encouraged businessmen to position the country as the leading supplier to Haiti.
Ambassador Federico Cuello said that United Nations purchases in the DR totaled around US$1 million after the tragedy in Haiti, up from zero in 2009. He said that the purpose of the workshop was to educate Dominican companies so they are better prepared to qualify in the tenders.
4 March 2010 - DR1 Daily News

Bridge over Soco River opened

President Leonel Fernandez goes east today to inaugurate the new Guido Gil Bridge over the Soco River. The bridge is an important link for travel from San Pedro de Macoris province to La Romana province and back. The 294-meter bridge is 23.60 meters wide and 20 meters above the highest known tide point of the river, higher than the old bridge that is still standing. The new bridge will ease traffic flow to the east, as the old narrow two-lane bridge could slow down through traffic. The government announced the bridge was built at a cost of US$1.36 billion.
4 March 2010 - DR1 Daily News

Canadian GG to visit

Canadian Prime Minister Stephen Harper announced yesterday that Michaelle Jean, Governor General and Commander-in-Chief of Canada and her husband Jean-Daniel Lafond will visit Haiti and the Dominican Republic from 8 to 10 March. Haitian-born Jean will visit as part of efforts to strengthen the partnership between Canada and Haiti in its recovery and reconstruction. The Prime Minister's office says, "Their Excellencies will engage the Haitian authorities and civil society groups as central players in a long-term, sustainable strategy for reconstruction and development of Haiti. The Governor General will also use the opportunity to underscore the importance of education, culture, women and youth within the broader reconstruction and recovery."
The plan is for the Governor General to spend the second part of the trip in the DR to strengthen Canada's good relations with the DR. "The Governor General will commend the Dominican Republic for its leadership in responding to the crisis in Haiti, and will encourage the DR to remain engaged in the long-term reconstruction of Haiti as well as in the development strategy for the island of Hispaniola".
The visiting dignitaries will meet with President Leonel Fernandez and civil society representatives.
Sworn in on 27 September 2005, the Right Honourable Michaelle Jean, the 27th Canadian governor general since Confederation in 1867, carries out the duties of head of State. Her husband, His Excellency Jean-Daniel Lafond, a filmmaker and writer, brings to Rideau Hall, alongside his spouse, his extensive experience in cultural activities and his profound belief that the development of creativity and the arts is part of a social cohesion and identity project that is vital for Canada's future.
Interestingly, Jean is a refugee from Haiti who came to Canada in 1968, after her father was tortured under the Francois Duvalier regime. She grew up in Quebec, taking on dual French and Canadian citizenship. She worked as a journalist and broadcaster for Radio-Canada and the Canadian Broadcasting Corporation (CBC). Upon accepting the position of Governor General, Jean renounced her French citizenship.
For more information about this working visit, and updates on the agenda, please see www.gg.ca
3 March 2010 - DR1 Daily News

Electricity subsidy has to be US$600m

Superintendent of Electricity Francisco Mendez estimates that even with rationing of service at the levels that are currently in use, the subsidy that was budgeted for the electricity system for 2010, US$350 million, will not be enough to cover the global deficit that the sector will have this year.
According to Mendez, the sector will require an additional US$250 million, bringing the total money needed to cover the electricity bill to a whopping US$600 million or RD$22 billion pesos. He did say that the 2009 deficit needed US$700 million to cover it. Mendez answered reporters' questions on the prolonged blackouts in many barrios, and he said that the government has to ration power supplies even though they have enough to supply the demand, because if they don't ration energy, the electricity bill from the generators would be so high that the government could not pay for it.
3 March 2010 - DR1 Daily News

Indotel tells Codetel to compensate users

Following a recent series of outages in the Codetel/Claro mobile service notably widespread on the 15th, 16th and the 26th of February and the 1st of March of this year, the Dominican Telecommunications Institute (Indotel) board of directors decided, during their 2 March meeting, to issue a deadline for Codetel to explain its plans to compensate customers for the recent loss of service.
The board also approved the start-up of work to review the General Regulations for Telephone Service that will emphasize the rights of customers and their right to be compensated for loss of service due to breakdowns that affect the principle of continuous service. Indotel president Jose Rafael Vargas told reporters that all customers have a right to be compensated, no matter which plan they were on, if their service is interrupted.
3 March 2010 - DR1 Daily News
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