Cash crunch takes Santo Domingo?s subway to the abyss

windeguy

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Jul 10, 2004
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SANTO DOMINGO.- The operations of Santo Domingo’s Metro Line 1 (subway) are about to collapse, said Transport Reform Office (Opret) deputy director Leonel Carrasco, who revealed serious economic difficulties.
"We have difficulties in maintaining and operating the Metro, we don’t want to let the system drop which has cost us so much sacrifice, first the Dominican people with taxes and second those of us who make the effort to maintain it. We’re breaking our backs working to keep the system from falling," he said, quoted by diariolibre.com.
Among the deficiencies Carrasco cited leaks in several stations and problems with the air conditioning system in some of the cars.
In that regard the official asked the Government to allocate the around RD$650.0 million in funds which he affirms Opret collects in fares each year.
Carrasco acknowledged however that despite the economic difficulties facing the country, president Danilo Medina instructed the Finance Ministry to allocate funds to operate the Metro’s 2nd Line by year end.
"Danilo, despite the economic situation, has ordered that we be attended. President Medina had ordered the Finance Minister to obtain funds for Line 2 and have the firm conviction that we’ll be providing east-west services at the end of this year."

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I am sure the above story is all just an exaggeration and PICHARDO will fill us in on the Dominican Reality of the Metro.
 

Castle

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Sep 1, 2012
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Regarding line 2, A friend with inside information told me that it is going to be finished, though at a reduced pace. Resources are being directed to social programs (education and health, mainly) and not so much to infrastructure and building. That's a good thing, although not as noticeable as a metro system.
 

AlterEgo

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Jan 9, 2009
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So.....they can't maintain the first line......and they're going forward with a second line......

What's wrong with this picture?????

Castle, I hope you are correct about the social programs, I think they're needed more than the metro.
 

windeguy

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Jul 10, 2004
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Also an electrical system that works is more needed than the Metro, but that has little to do with what will happen.
 

Castle

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Sep 1, 2012
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Well, Metro systems are not designed to be self-sufficient, at least not in developing countries. The idea behind them is to save resources in other areas such as fuel imports, concho subsidies, etc. The problem here, is the same as usual. The government builds a metro, but doesn't go the whole distance. You need Metrobus to help bring passengers to Metro stations. If I had a Metrobus line near my house and another near my office, I would not drive to work. But there is none. So, I drive, and some of my neighbors take the concho as usual. So the state does not save on fuel or subsidies, and still has to maintain the metro system. And, if there was any savings at all, they would find a way to use them for something else.

Regarding the social programs, I was told an alphabetization campaign is starting soon, with possibly as many as 25,000 volunteers. And some other pilot programs attacking from different angles the problems at a few of the worst barrios.
 

Fernandez

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Jan 4, 2002
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Hopefully a solution will be found that solves the immediate problems and provides for future support.
It would be a real sin for such an investment to go sour, given the sacrifices in human and economic capital that has been allocated to this project.
 
Dec 26, 2011
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Ya gotta read between the lines. The only thing he's complaining about is some leaks, and a couple of A/C units that aren't working.

The metro is bringing in RD$650 million a year, but obviously, the money is going somewhere else.

He wants some of that money to go to his um... budget.

I read the same. It speaks of "collapse", which sounds serious. Then it details a couple of routine maintenance issues.
 

Ringo

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Mar 6, 2003
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Why does this not surprise me AT ALL. It NEVER made any sense to start with. Shut it down, fill it with water and make a cave dive out of it. Would make more money.
 

PICHARDO

One Dominican at a time, please!
May 15, 2003
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I demand Pichardo's explanation !!!!! :p

The Metro Line one sends to the state treasury the fares it collects as state revenues, but is not getting back the allotted funds to pay for the costs of operations, due to how the new administration is still slowing adding stuff onto the new emergency budget (since it's still in a deal negotiation with the IMF).

The head of the OPRET's Metro administration is simple stating the urgency those funds are needed in order to keep the services now rendered intact, or else allow the system to keep the revenues to cover for the operations pending the new budget for the FY 2013.

It's a question of economics...

From the fare revenues the Metro is only allowed to keep some 10% to a max of 15% for administrative expenses and security budgeting, the rest and bulk is sent each quarter to the treasury...

Nothing more than the usual "media" usage to get the authorities (Prez) attention and support by our own institutions. Since everything handled by the treasury, needs the presidential OK to be disbursed on time or not.


Much ado about nothing...
 

Ringo

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Mar 6, 2003
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I just shake my head everytime Pich posts. What he spins is soo ... how can he... what?? just to far beyond reality he is.
 

mido

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May 18, 2002
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I just shake my head everytime Pich posts. What he spins is soo ... how can he... what?? just to far beyond reality he is.
...and the only one who beliefs his BS is he himself, I really wonder whether he is aware of that. But it is somehow entertaining.
 
Jan 9, 2004
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The Metro Line one sends to the state treasury the fares it collects as state revenues, but is not getting back the allotted funds to pay for the costs of operations, due to how the new administration is still slowing adding stuff onto the new emergency budget (since it's still in a deal negotiation with the IMF).

The head of the OPRET's Metro administration is simple stating the urgency those funds are needed in order to keep the services now rendered intact, or else allow the system to keep the revenues to cover for the operations pending the new budget for the FY 2013.

It's a question of economics...

From the fare revenues the Metro is only allowed to keep some 10% to a max of 15% for administrative expenses and security budgeting, the rest and bulk is sent each quarter to the treasury...

Nothing more than the usual "media" usage to get the authorities (Prez) attention and support by our own institutions. Since everything handled by the treasury, needs the presidential OK to be disbursed on time or not.


Much ado about nothing...


Well, if they collect 650 million RD annually and they are only allowed to keep 10-15% max, how do you then explain the $15 million US subsidy that the government provided the Metro to meet its operating budget (nothing to do with Line2 construction costs as that was allocated separately).

Besides, no one in their right mind believes the operating budget could only be around $2 million US. That barely pays for the staff Jeepetas.

It appears someone needs to do a better job of "budgeting."


Respectfully,
Playacaribe2
 

windeguy

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Jul 10, 2004
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If it is just some director of the Metro whining he isn't getting enough of the proceeds, that is one thing. If the Metro is in more serious trouble, then time will tell on that. More will be obvious in 6 months to a year.
 

PICHARDO

One Dominican at a time, please!
May 15, 2003
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Santiago de Los 30 Caballeros
Maintenance problems cited in the Metro



Santo Domingo

Four of the nine stations of the first Metro line in Santo Domingo have "considerable" maintenance problems, said by telephone last night Listin Diario deputy director of the Office for the Reorganization of Transportation (Opret), Leonel Carrasco.

The official said the stations most affected by maintenance problems are Mama Tingo, Jose Francisco Pena Gomez, Gregorio Urbano Gilbert and Cassandra Damir?n.

Carrasco said he made the disclosure because they have received many complaints from users of Metro reporting "leaks" in most seasons, some more consideration than others.

He said there's a lack of economic resources at Opret since it has two months without allowances that correspond to the disbursement of public funds from the spending bill. He attributed the delay in the delivery of those resources to the bureaucracy as the government's new.

He added that these disadvantages are not emergencies, but of consideration, so a coming "soon" economic allocation would be a great relief.
http://www.listin.com.do/la-republica/2012/9/20/248060/Citan-problemas-de-mantenimiento-en-el-Metro



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A less manipulated and true state of things for Line 1 operations...

It's all about how the gov is slow in the $$$ for the ministries and agencies so far, pending signing an agreement with the IMF...

Nothing out of the norm...

Much ado about nothing!