Next DR1 Daily News update: Monday, 4 March 2019
Medina raises minimum wage in the government
Medina: Small business soon to get a tax break
Medina: pension plan profits to be redistributed
Ports get government attention
Medina says crime is at its lowest point
Medina on the reelection trail?
Print media on the 27 February Danilo Medina speech
Labor representative rejects flexible working hours and more
Punta Catalina thermoelectric is turned on
WCG Energy starts Monte Plata solar power project
Public school teacher strike called off
Unibe becomes first bilingual Dominican university
DR trade deficit increases in 2018
David Lewis: The Trump Agenda and the Dominican Republic
JCE to go ahead with automated voting system
Odebrecht case speculation: Prosecutor error could kill case
Remains of second diver lost in Dudú Lagoon found
La Casa de Bernarda Alba at the National Theater
Next DR1 Daily News update: Monday, 4 March 2019
The next DR1 Daily News update will be published on Monday, 4 March 2019. The Monday issue will compile headline news for the previous Friday, Saturday and Sunday. Breaking news can be followed 24/7 in the Forums. the DR1 Forum at http://www.dr1.com
Medina raises minimum wage in the government
At a time when labor, employer and government sectors have begun discussions for minimum wage and pension pay increases in the private sector, President Danilo Medina announced wage increases for government workers in his Independence Day rendition of accounts annual address.
As of 1 April 2019 the minimum wage in the public sector increases from RD$5,117 to RD$10,000. Those making RD$10,000 to RD$20,000 in government will receive wage increases of 10%, and those making RD$20,000 to RD$30,000 will receive wage increase of 5%.
The minimum state pension will increase from RD$5,117 to RD$8,000 as of 1 April 2019. Those making RD$8,000 to RD$20,000 in retirement monthly payments will see increases of 10%, and those receiving retirement payments of RD$20,000 to RD$30,000 will get an increase of 5%.
Also announced was an increase in the father leave for employees in the public sector from two days to seven days.
https://presidencia.gob.do/noticias...tor-publico-y-pensiones-partir-del-primero-de
https://www.cdn.com.do/2019/02/27/discurso-completo-pronunciado-danilo-medina-este-27-febrero-2019/
Medina: Small business soon to get a tax break
President Danilo Medina promised the government would implement a simplified tax procedure whereby micro, small & medium enterprises (MSMEs) would be exempt from having to pre-pay taxes. The MSMEs adhering to a new plan will neither have to pay the asset tax. He made the announcement during his annual rendition of accounts speech on 27 February 2019.
Medina said those qualifying under the plan will also be exempt from having to present monthly statements of tax vouchers. The new tax model, named Régimen Especial Único, or Special Unique Regime will allow businesses to present a simplified tax statement once a year.
“Helping our MSME’s become more competitive is as important as providing them with credit,” said the President. He said small business are a fundamental pillar in the economic competitiveness strategy of the government. Medina said the program would start this March 2019, “in 10 days.”
https://listindiario.com/economia/2...no-paguen-anticipo-de-impuesto-sobre-la-renta
https://www.cdn.com.do/2019/02/27/discurso-completo-pronunciado-danilo-medina-este-27-febrero-2019/
Medina: pension plan profits to be redistributed
President Danilo Medina announced during his 27 February 2019 rendition of accounts speech that he has sent to Congress the Social Security Bill that contemplates a redistribution of the profits generated by the national social security system. Banks own the majority of the Administradoras de Fondos de Pensiones (AFP) companies and report a 30% yield. The President explained the bill submitted to Congress proposes a gradual reduction of their profits to reach 0.85% in 12 years. He said this would mean a redistribution of RD$40 billion in the next 12 years instead to pension plan holders.
Furthermore, he pointed out contemplated in the reforms are provisions so that thousands of companies and public entities that are in arrears with the IDSS can put their social security payment plans in order. This will benefit around 150,000 workers.
Moreso, the President announced the Executive Branch would be sending to Congress a bill to definitely close the Dominican Institute of Social Security (IDSS), as contemplated in the Dominican Social Security System Law 87-01. Employees of the IDSS will be transferred to other government entities.
https://www.cdn.com.do/2019/02/27/discurso-completo-pronunciado-danilo-medina-este-27-febrero-2019/
https://listindiario.com/la-republi...disolvera-el-seguro-social-fundado-en-el-1947
Ports get government attention
The ports of Manzanillo, Puerto Plata and San Pedro de Macorís are on the government’s priority list, according to President Danilo Medina.
Medina announced in his 27 February 2019 speech the repair of the present dock at the Manzanillo port in Montecristi, a first step for the modernizing of the northwestern port. He said the project has a budget of RD$500 million. At the same time, pre-feasibility studies are being drafted to have a master plan for the port so that it can service Panamax ships, the mid-sized cargo ships capable of passing through the Panama Canal, and the logistics-industrial development of the northwest.
Medina said that on 15 January 2019, works were begun on the construction of the Puerto Plata city port, with capacity to serve cargo ships and cruise ships.
He highlighted that next on the list of government priorities is the southeastern Port of San Pedro de Macorís. He said an international consulting firm has been hired to carry out pre-feasibility studies.
https://eldia.com.do/presidente-med...n-modernizacion-de-infraestructura-portuaria/
https://www.cdn.com.do/2019/02/27/discurso-completo-pronunciado-danilo-medina-este-27-febrero-2019/
Medina says crime is at its lowest point
President Danilo Medina says the crime index has dropped every year since 2012. He said in 2012 when he first took office the crime index was at 24% and it is now at 10.4%. He called this “the lowest ever registered.” He attributed the numbers to Insight Crime. Insight Crime describes itself as a foundation dedicated to the study of organized crime in Latin America and the Caribbean.
Medina made the remark when reviewing government achievements in 2018 for his rendition of accounts speech on 27 February 2019. “I am aware that these figures do not alleviate the concerns about violent crime, nor do they console families that have been affected. Nevertheless, these numbers are evidence we are doing our best and succeeding by attacking this problem. The security of the Dominican people is a central concern of our government,” he said.
“But we also are struggling against another crime that while is less serious than homicide is equally intolerable and affects the wellbeing of people. I am referring to theft that according to the data is also on the decline,” he said. Medina said that statistics offered by the Citizen Security Observatory indicate that during the first half of 2018 there were 1,700 less cases of robbery than in the same period in 2017. He said that in the past year the efficient response capacity to confront these challenges of organized crime and drug trafficking has improved.
He shared that in 2018, the National Drug Control Agency implemented its Control Center and Mobil Control programs for the reception and analysis of crime information in real time. Agents have received wage increases of 100 to 120%, increased training and equipping for a more effective job. He said that as a result in 2018, 16.4 tons of narcotics were seized. 1,300 persons were sent to trial on drug charges.
Medina highlighted the advances of the 911 Emergency System that now has coverage of 74% of the population. He mentioned that in 2018 the service was extended to the provinces of San Pedro de Macorís, Peravia, Monseñor Nouel, San Cristóbal, La Romana, La Altagracia, Monte Plata and Samaná. The provinces of Azua, San Juan, Barahona, in the south; Duarte, Sánchez Ramírez, María Trinidad Sánchez y Hermanas Mirabal, in the northeast; Hato Mayor and El Seibo, in the east are scheduled to be added to the service in 2019, said the President.
Medina spoke of wage increases to police in 2018 ranging from 40 to 131%.
As part of the government efforts to reduce crime, Medina highlighted the major investment the government is carrying out in improving conditions at national jails such as the new La Victoria jail investment of more than RD$6 billion. The Medina government is using funds received from the US$184 million deal reached with Odebrecht to not prosecute company executives for bribing Dominican government officials.
https://acento.com.do/2019/actualid...iminalidad-los-mas-bajos-se-hayan-registrado/
https://presidencia.gob.do/noticias...na-expansion-911-botones-panico-y-camaras-con
https://presidencia.gob.do/noticias...io-terminara-con-hacinamiento-y-carceles-como
https://www.cdn.com.do/2019/02/27/discurso-completo-pronunciado-danilo-medina-este-27-febrero-2019/
https://www.diariolibre.com/actuali...zar-el-911-y-la-seguridad-del-pais-FL12199927
https://www.diariolibre.com/actuali...egura-ha-reducido-crimenes-y-robos-NL12197802
Medina on the reelection trail?
The Dominican Constitution calls for the annual 27 February Independence Day presidential speech to be a rendition of accounts of the passing year. Carlos Pimentel, executive director of Participación Ciudadana, a leading political watchdog group, remarked that President Danilo Medina instead endeavored to promote his achievements from a political party perspective and consolidated data from 2012 to 2018 in his rendition of accounts on Wednesday, 27 February 2019 at the National Assembly. The speech was broadcast by a record-breaking number of TV and radio stations in the country.
Pimentel criticized the selectivity of data used by Medina. He said that Medina used World Economic Forum Competitiveness Report data on infrastructure where the DR is ranked as above average but then did not mention policies adopted or to be adopted relating to transparency and the reduction of rampant corruption in the country. The same World Economic Forum Competitiveness Report lists the Dominican Republic as above average in corruption.
PRM deputy Faride Raful observed that the announced minimum wage hike for the public sector is just a strategic move to enhance the political acceptance of President Medina among public employees.
In reporting on the speech and the President’s concluding words on being willing to pay the price that is needed to serve the country, the Listin Diario wrote that the phrases are being interpreted by political analysts preparation for his possible bid for reelection. "I am first, day after day, hour after hour, willing to pay the price that is needed, to serve our country," said Medina in his concluding remarks to the National Assembly in Congress. "And today, almost seven years later, I say again: I'm here for the difficult. Yes, for the difficult," he said.
The Listin Diario observed that on the outskirts of the Congress building, thousands of Medina followers that had come from different points in the country, promoted his re-election, waving flags and shouting campaign slogans.
President Medina has said it would announce in March 2019 his intention to seek the presidential candidacy for the ruling PLD party.
The speech was the longest ever by the President who has spoken in 2013, 2014, 2015, 2016, 2017 and 2018. It was 16,882 words long. President Medina read for two hours and 29 minutes from the teleprompter at the National Assembly.
In his speech, Medina spoke of the resilience of the Dominican Republic to maintain high growth and low inflation despite external shocks. He highlighted the achievement of his government in maintaining the regional lead in GDP growth. He cited that stats for his six years in government: 2013: 4.9%; 2014: 7.6%: 2015: 7%; 2016: 6.6%; 2017: 4.6%; and 2018: 7%. This compares to the regional average of 1.2%. Medina said this was accomplished while keeping inflation also at regional lows throughout the same period. He observed inflation in 2018 was 1.17%, the lowest in the past six years. He said poverty declined from 39.7% in 2012 to 23% in 2018, meaning 1.5 million people are no longer living in poverty. He mentioned the creation of 770,000 jobs during his government. He said the country produces 85% of the food it consumes and exported US$11 billion to 100 countries. He spoke with proud of what he described as the most ambitious reforestation program in the region.
https://eldia.com.do/participacion-...n-su-discurso-danilo-jugo-mucho-a-las-cifras/
http://hoy.com.do/tambores-de-reele...io-que-sea-para-seguir-sirviendo-a-este-pais/
https://www.diariolibre.com/actuali...-de-rendicion-de-cuentas-de-medina-BB12201167
https://listindiario.com/la-republi...leccion-flameo-en-discurso-y-en-los-allegados
https://www.cdn.com.do/2019/02/27/discurso-completo-pronunciado-danilo-medina-este-27-febrero-2019/
https://www.elcaribe.com.do/2019/02/28/panorama/politica/piden-reeleccion-de-danilo-medina/
Print media on the 27 February Danilo Medina speech
With President Danilo Medina’s speech on 27 February 2019 being the headline news for the day, the leading print media dedicated their editorials to the president. Read these here:
http://hoy.com.do/discurso-y-males-de-gran-tamano/
https://listindiario.com/editorial/2019/02/28/555487/esperanza-y-expectativas
https://www.elcaribe.com.do/2019/02/28/opiniones/editorial/estimulante-discurso/
https://www.diariolibre.com/opinion/am/buen-discurso-ambiciosas-metas-PL12199475
https://www.cdn.com.do/2019/02/27/discurso-completo-pronunciado-danilo-medina-este-27-febrero-2019/
Labor representative rejects flexible working hours and more
Rafael Abreu, the labor sector representative in the employers-labor and government committee that discusses changes to the Labor Code and minimum wages, says no labor gain will be touched. Abreu is president of the Confederación Nacional de Unidad Sindical (CNUS). Reported in Diario Libre, Abreu highlighted four points that are not negotiable in the Labor Code discussions. These are the reduction in the severance payment for new employees, flexibility in working hours and days, flexibility in first job working hours, and maternity rights.
Abreu says he will take 15 days to study a proposal presented by employers with the backing of the Ministry of Labor. The proposal calls for flexible work hours and days. It mentions capping severance payments to three years and to a sum equal to minimum wage for five years. Employees who have accrued severance payments will maintain these. The employers have also proposed the possibility of working four days a week without exceeding 12 hours per day or 60 hours per week.
https://www.diariolibre.com/economi...n-no-aceptaran-cambios-en-cesantia-BK12183615
https://www.diariolibre.com/opinion/am/el-dia-libre-GK12183764
Punta Catalina thermoelectric plant performance test
The Public Electricity Corporation (CDEEE) executive vice president Rubén Jiménez Bichara announced the first of two units of the Punta Catalina coal-fired power central was connected to the national power grid system (SENI) for a 30 minute test operation on 27 February 2019, in commemoration with Independence Day. The tests are supervised by General Electric, manufacturer of the turbines. As reported, during the test, 36.5 megawatts were contributed to the national power grid.
Punta Catalina Power Central is located in southcentral Hatillo, Azua. It has a gross capacity for 770-megawatts. It encompasses two power plants with capacity to contribute 337 MW each to the national power grid.
The project is the most important single infrastructure work committed by the Medina administration. The power plant has been under construction for five years by Maire Tecnimont SpA, Construtora Norberto Odebrecht S.A and Ingenieria Estrella SRL. The project has an estimated cost of more than US$2 billion.
Jiménez Bichara said in the first two weeks of operation the power plant is expected to contribute 250 megawatts to the SENI and 300 MW by May when the second unit of the complex is scheduled to enter into operation. The power plant was built to contribute 35% of the total power consumed in the Dominican Republic and provide the government savings of US$400 million in lower cost energy generated.
To reduce the impact on the environment, a modern pipe system was installed for the transfer of coal from the coal terminal with a capacity of 80,000 tonnes to the power plant.
US-based company Xcoal Energy was contracted to supply 462,000 metric tons of coal to the Punta Catalina power plant during its test phase.
The power plant was funded by Dominican government, with loans from the Societe Generale (France), Banco Santander (Spain), ING Bank (Netherlands), Unicredit (Italy), and Deutsche Bank (Germany), after initial plans for Brazilian export agency financing BNDES collapsed after a US court convicted Odebrecht of paying bribes to secure contracts around the world. The Dominican government is seeking new investors for the project.
http://hoy.com.do/1880420-2/
https://listindiario.com/la-republi...punta-catalina-realiza-primera-sincronizacion
https://www.cdn.com.do/2019/02/27/c...punta-catalina-al-sistema-electrico-nacional/
https://www.sourcewatch.org/index.php/Punta_Catalina_Power_Central
WCG Energy starts Monte Plata solar power project
WCG Energy Ltd announced the start of construction of a US$78 million solar energy plant in Mata de Palma, Guerra in Monte Plata province on Monday, 25 February 2019. The project is 45 minutes from the city of Santo Domingo. The plan is for it to generate 110 million kilowatt hours, an amount sufficient to supply the present energy demand of more than 80,000 inhabitants in the eastern region.
Serge Gharibian, president of the company, came for the symbolic start of construction. Also attending was Angel Canó, president of the National Energy Commission, and Ruben Jimenez Bichara, executive vice president of the Public Electricity Corporation (CDEEE) and senator Charlie Mariotti (PLD-Monte Plata), among others. Gharibian remarked that the project will be a model to follow for the production of renewable energy.
The company had been authorized to carry out preliminary studies for the power generation company in 2012.
https://www.diariolibre.com/economia/inician-un-proyecto-de-energia-solar-de-50-mw-CK12181074
https://www.cne.gob.do/proyecto-fotovoltaico-wcg-energy/
Public school teacher strike called off
The Dominican Public School Teachers’ Association (ADP) cancelled the sit-down protest called for this Thursday, 28 February 2019 to protest the government’s failure to comply with agreements that are now over two years old. The head of the group, Xiomara Guante, told reporters some overdue payments had been received.
The ADP had said that if the Ministry of Education does not fulfill its obligations with regards to the arrears stemming from teacher assessments, they would call for a demonstration by the national assembly of public school teachers on Friday, 1 March, in front of the Ministry of Education on Av. Máximo Gómez in Santo Domingo.
Newly appointed Education Minister Antonio Peña Mirabal to work with teachers for better quality in public education. He said that he would invite the members of the ADP executive committee to participate in new talks.
https://www.diariolibre.com/actuali...centracion-para-el-proximo-viernes-MK12189050
Unibe becomes first bilingual Dominican university
Rector Julio Amado Castaños Guzmán of the Universidad Iberoamericana (UNIBE) announced on Monday, 25 February 2019 that English is now an official second language at the private university for undergraduate and graduate courses. Students can now choose courses from a selection in English and Spanish.
https://www.unibe.edu.do/unibe-se-c...era-universidad-del-pais-con-oferta-bilingue/
DR trade deficit increases in 2018
2018 closed with a trade deficit of US$11.11 billion. In 2017, the trade deficit was already a high US$9.18 billion. The data was compiled by the Programa de Estudios del Desarrollo Dominicano (PED), under the Centro de Estudios Económicos y Sociales P. José Luis Alemán SJ of the Pontificia Universidad Católica Madre y Maestra (PUCMM), the largest Dominican private university. The program is directed by social anthropologist Fernando Ferrán.
Global trade was US$30,065 million in 2018. This included US$9,473.9 million in exports and US$20,591.1 million in imports.
Barómetro de Comercio Internacional (BCI) newsletter of the PED explains duty free zones were the most dynamic exporters, with US$5,757 million, or 61% of the total. These posted increases in exports of 9% compared to 2017.
Imports, on the other hand, were up 17.7%, according to data compiled by the Customs Agency (DGA).
https://www.eldinero.com.do/78655/la-pucmm-deplora-aumento-del-deficit-comercial-de-rd-en-2018/
David Lewis: The Trump Agenda and the Dominican Republic
Regional business and trade policy expert, David Lewis of the Washington, D.C.-based advisory firm, Manchester Trade Limited, Inc., at the American Chamber of Commerce during the monthly luncheon on Wednesday, 20 February 2019, gave Dominican businessmen insights on what to expect from the Trump administration, especially regarding the 15-year old DR-CAFTA and future trade.
Lewis said the focus needs to be on achieving competitive adjustments with greater gains for the country as protection is gradually removed for several sensitive products. DR-CAFTA calls for zero tariffs by 2026.
"Forget about renegotiating and focus on how competitive adjustment is achieved, with no major damage and possibly higher profits," Lewis said. He made it clear the Dominican Republic was the success story for the US in the DR-CAFTA agreement. He highlighted the increase in total exports, the diversifying of these, an increase in US investment and the consolidation of a competitive export model based on national industrial exports, free zone exports, apparel, footwear, pharmaceuticals, medical devices, electrical and electronic devices and logistics. In his speech he spoke about the boom of services (tourism, ITC, and finances), highlighting that 65% of the GDP is services. He said the Dominican Republic had reported the best total exporter performance in the region.
And then he looked into the adjustments that are ahead as the tariff and quota protection that was intended to give local companies time to prepare their companies for US competition is gradually being phased out. Expect more US imports in stores as by 2020 the tariffs will be eliminated on nearly all agricultural goods by 2020. By 2026, powdered milk, rice, mozzarella and yoghurt will enter duty free.
Lewis said that the United States government is concerned that China might seek to position itself in the Dominican Republic to take advantage of trade privileges under DR-CAFTA.
“To position the Dominican Republic as an attractive commercial reference in the region, more and better products should be exported, more investments attracted by offering a better business environment,” he said. “No matter how good a free trade agreement or the development of foreign trade is, without these components there will be a serious problem in the sustainability of the sectors," he said. He called for strengthening public-private alliances for stronger institutions and strengthening of trade and investment with the United States.
Lewis also stressed how because of its strategic geographical location, the Dominican Republic can play a crucial role participating in important agreements signed by Latin America with the United States.
In his talk, he shared what the United States Trade Representative (USTR) has on file for pending with the Dominican Republic. These include the technical barriers to trade in the regulation of steel rebar, food labeling, tariffs and quota allocations, management of import licenses and lack of transparency and anticorruption provisions for Dominican government procurement.
https://www.eldinero.com.do/78405/d...n-a-rd-libres-aranceles-en-2020-por-dr-cafta/
ttps://www.eldinero.com.do/78218/resaltan-dr-cafta-ha-sido-beneficioso-para-republica-dominicana/
https://listindiario.com/economia/2...en-lista-con-8-puntos-sin-cumplir-el-dr-cafta
https://www.elcaribe.com.do/2019/02...l-acuerdo-con-estados-unidos-puede-revisarse/
http://hoy.com.do/1877060-2/
https://ustr.gov/sites/default/files/files/Press/Reports/201
8%20National%20Trade%20Estimate%20Report.pdf
JCE to go ahead with automated voting system
The Central Electoral Board (JCE) announced on Monday, 25 February 2019 that it is calling for a fast-tracked bids for the automated voter system to run with the software designed by their IT department. The system would be tested for the 6 October 2019 primaries that the JCE will organize for five political parties -- Partido de la Liberación Dominicana (PLD), Partido Revolucionario Moderno, Partido Revolucionario Dominicano, Alianza Pais (AlPais) and Opción Democrática (OD).
The JCE also approved the hiring of an international auditing firm to carry out the technical audit of the software developed by the JCE.
If the system proves to be successful, it will be used for the general elections scheduled for 2020.
https://www.diariolibre.com/actuali...para-adquirir-equipos-de-primarias-DK12181174
Odebrecht case speculation: Prosecutor error could kill case
State prosecutors did not act after having been authorized by Supreme Court Judge Francisco Ortega to travel to Brazil for personal interviews to Odebrecht officers who had shared accusatory comments regarding bribes paid in the Dominican Republic. There is now speculation this could kill any case the Dominican state has against the short list of seven the Attorney General has accused of taking bribes. Odebrecht revealed during the US court hearings that it had paid US$92 million in bribes in the Dominican Republic to get government contract work.
Diario Libre published on 26 February 2019 the authorization from the Supreme Court judge. Attorney General Jean Alain Rodríguez had requested the authorization on 2 November 2017, giving the prosecutors ample time to coordinate traveling to Brazil for the questioning of former Odebrecht general manager, Marcelo Bahía Odebrecht, former general manager in the Dominican Republic Marco Vasconcelos Cruz, and others.
Miguel Valerio, lawyer of former Public Works Minister Víctor Díaz Rúa, made known to the press the existence of Resolution 0073-2017 and the lack of diligence of state prosecutors. Valerio has called for the validity of the accusatory statements by the Odebrecht officers to be annulled as per the local legal requirement of these having to have been interrogated in person.
https://www.diariolibre.com/actuali...recht-y-la-procuraduria-no-lo-hizo-IK12187438
Remains of second diver lost in Dudú lagoon found
Rescue workers announced they located the remains of 44-year old Carlos Basso, the second missing Italian diver in Dudú Lagoon on Tuesday, 26 February.
The rescue operation included specialists from the Dominican Republic Speleological Society (DRSS), Center for Emergency Operations (COE), Civil Defense, Red Cross, National Police, Ministry of Tourism, among other entities. 10 divers endeavored in the search since the divers went missing on Saturday, 9 February 2019.
The remains of 57-year old diver Carlos Barbieri was recovered on Monday, 11 February. Barbieri resided in Las Terrenas where he was the owner of a construction material company located in the city of Sánchez, Samaná.
https://www.elcaribe.com.do/2019/02/27/panorama/region-norte/recuperan-cuerpo-de-otro-buzo-en-dudu/
https://elnuevodiario.com.do/encuen...buzos-italianos-desaparecidos-en-laguna-dudu/
https://www.dr-ss.com/safety
La Casa de Bernarda Alba at the National Theater
Friday, Saturday and Sunday, 1-3 March 2019, the Sala Ravelo of the National Theater presents “La Casa de Bernarda Alba,” a Dominican version of the famous Spanish play by Federico García Lorca. Starring María Castillo, directed by Indiana Brito. 8:30pm on Friday and Saturday, 6:30pm on Sunday. Tickets for sale at the National Theater and online at Uepa Tickets.
Medina raises minimum wage in the government
Medina: Small business soon to get a tax break
Medina: pension plan profits to be redistributed
Ports get government attention
Medina says crime is at its lowest point
Medina on the reelection trail?
Print media on the 27 February Danilo Medina speech
Labor representative rejects flexible working hours and more
Punta Catalina thermoelectric is turned on
WCG Energy starts Monte Plata solar power project
Public school teacher strike called off
Unibe becomes first bilingual Dominican university
DR trade deficit increases in 2018
David Lewis: The Trump Agenda and the Dominican Republic
JCE to go ahead with automated voting system
Odebrecht case speculation: Prosecutor error could kill case
Remains of second diver lost in Dudú Lagoon found
La Casa de Bernarda Alba at the National Theater
Next DR1 Daily News update: Monday, 4 March 2019
The next DR1 Daily News update will be published on Monday, 4 March 2019. The Monday issue will compile headline news for the previous Friday, Saturday and Sunday. Breaking news can be followed 24/7 in the Forums. the DR1 Forum at http://www.dr1.com
Medina raises minimum wage in the government
At a time when labor, employer and government sectors have begun discussions for minimum wage and pension pay increases in the private sector, President Danilo Medina announced wage increases for government workers in his Independence Day rendition of accounts annual address.
As of 1 April 2019 the minimum wage in the public sector increases from RD$5,117 to RD$10,000. Those making RD$10,000 to RD$20,000 in government will receive wage increases of 10%, and those making RD$20,000 to RD$30,000 will receive wage increase of 5%.
The minimum state pension will increase from RD$5,117 to RD$8,000 as of 1 April 2019. Those making RD$8,000 to RD$20,000 in retirement monthly payments will see increases of 10%, and those receiving retirement payments of RD$20,000 to RD$30,000 will get an increase of 5%.
Also announced was an increase in the father leave for employees in the public sector from two days to seven days.
https://presidencia.gob.do/noticias...tor-publico-y-pensiones-partir-del-primero-de
https://www.cdn.com.do/2019/02/27/discurso-completo-pronunciado-danilo-medina-este-27-febrero-2019/
Medina: Small business soon to get a tax break
President Danilo Medina promised the government would implement a simplified tax procedure whereby micro, small & medium enterprises (MSMEs) would be exempt from having to pre-pay taxes. The MSMEs adhering to a new plan will neither have to pay the asset tax. He made the announcement during his annual rendition of accounts speech on 27 February 2019.
Medina said those qualifying under the plan will also be exempt from having to present monthly statements of tax vouchers. The new tax model, named Régimen Especial Único, or Special Unique Regime will allow businesses to present a simplified tax statement once a year.
“Helping our MSME’s become more competitive is as important as providing them with credit,” said the President. He said small business are a fundamental pillar in the economic competitiveness strategy of the government. Medina said the program would start this March 2019, “in 10 days.”
https://listindiario.com/economia/2...no-paguen-anticipo-de-impuesto-sobre-la-renta
https://www.cdn.com.do/2019/02/27/discurso-completo-pronunciado-danilo-medina-este-27-febrero-2019/
Medina: pension plan profits to be redistributed
President Danilo Medina announced during his 27 February 2019 rendition of accounts speech that he has sent to Congress the Social Security Bill that contemplates a redistribution of the profits generated by the national social security system. Banks own the majority of the Administradoras de Fondos de Pensiones (AFP) companies and report a 30% yield. The President explained the bill submitted to Congress proposes a gradual reduction of their profits to reach 0.85% in 12 years. He said this would mean a redistribution of RD$40 billion in the next 12 years instead to pension plan holders.
Furthermore, he pointed out contemplated in the reforms are provisions so that thousands of companies and public entities that are in arrears with the IDSS can put their social security payment plans in order. This will benefit around 150,000 workers.
Moreso, the President announced the Executive Branch would be sending to Congress a bill to definitely close the Dominican Institute of Social Security (IDSS), as contemplated in the Dominican Social Security System Law 87-01. Employees of the IDSS will be transferred to other government entities.
https://www.cdn.com.do/2019/02/27/discurso-completo-pronunciado-danilo-medina-este-27-febrero-2019/
https://listindiario.com/la-republi...disolvera-el-seguro-social-fundado-en-el-1947
Ports get government attention
The ports of Manzanillo, Puerto Plata and San Pedro de Macorís are on the government’s priority list, according to President Danilo Medina.
Medina announced in his 27 February 2019 speech the repair of the present dock at the Manzanillo port in Montecristi, a first step for the modernizing of the northwestern port. He said the project has a budget of RD$500 million. At the same time, pre-feasibility studies are being drafted to have a master plan for the port so that it can service Panamax ships, the mid-sized cargo ships capable of passing through the Panama Canal, and the logistics-industrial development of the northwest.
Medina said that on 15 January 2019, works were begun on the construction of the Puerto Plata city port, with capacity to serve cargo ships and cruise ships.
He highlighted that next on the list of government priorities is the southeastern Port of San Pedro de Macorís. He said an international consulting firm has been hired to carry out pre-feasibility studies.
https://eldia.com.do/presidente-med...n-modernizacion-de-infraestructura-portuaria/
https://www.cdn.com.do/2019/02/27/discurso-completo-pronunciado-danilo-medina-este-27-febrero-2019/
Medina says crime is at its lowest point
President Danilo Medina says the crime index has dropped every year since 2012. He said in 2012 when he first took office the crime index was at 24% and it is now at 10.4%. He called this “the lowest ever registered.” He attributed the numbers to Insight Crime. Insight Crime describes itself as a foundation dedicated to the study of organized crime in Latin America and the Caribbean.
Medina made the remark when reviewing government achievements in 2018 for his rendition of accounts speech on 27 February 2019. “I am aware that these figures do not alleviate the concerns about violent crime, nor do they console families that have been affected. Nevertheless, these numbers are evidence we are doing our best and succeeding by attacking this problem. The security of the Dominican people is a central concern of our government,” he said.
“But we also are struggling against another crime that while is less serious than homicide is equally intolerable and affects the wellbeing of people. I am referring to theft that according to the data is also on the decline,” he said. Medina said that statistics offered by the Citizen Security Observatory indicate that during the first half of 2018 there were 1,700 less cases of robbery than in the same period in 2017. He said that in the past year the efficient response capacity to confront these challenges of organized crime and drug trafficking has improved.
He shared that in 2018, the National Drug Control Agency implemented its Control Center and Mobil Control programs for the reception and analysis of crime information in real time. Agents have received wage increases of 100 to 120%, increased training and equipping for a more effective job. He said that as a result in 2018, 16.4 tons of narcotics were seized. 1,300 persons were sent to trial on drug charges.
Medina highlighted the advances of the 911 Emergency System that now has coverage of 74% of the population. He mentioned that in 2018 the service was extended to the provinces of San Pedro de Macorís, Peravia, Monseñor Nouel, San Cristóbal, La Romana, La Altagracia, Monte Plata and Samaná. The provinces of Azua, San Juan, Barahona, in the south; Duarte, Sánchez Ramírez, María Trinidad Sánchez y Hermanas Mirabal, in the northeast; Hato Mayor and El Seibo, in the east are scheduled to be added to the service in 2019, said the President.
Medina spoke of wage increases to police in 2018 ranging from 40 to 131%.
As part of the government efforts to reduce crime, Medina highlighted the major investment the government is carrying out in improving conditions at national jails such as the new La Victoria jail investment of more than RD$6 billion. The Medina government is using funds received from the US$184 million deal reached with Odebrecht to not prosecute company executives for bribing Dominican government officials.
https://acento.com.do/2019/actualid...iminalidad-los-mas-bajos-se-hayan-registrado/
https://presidencia.gob.do/noticias...na-expansion-911-botones-panico-y-camaras-con
https://presidencia.gob.do/noticias...io-terminara-con-hacinamiento-y-carceles-como
https://www.cdn.com.do/2019/02/27/discurso-completo-pronunciado-danilo-medina-este-27-febrero-2019/
https://www.diariolibre.com/actuali...zar-el-911-y-la-seguridad-del-pais-FL12199927
https://www.diariolibre.com/actuali...egura-ha-reducido-crimenes-y-robos-NL12197802
Medina on the reelection trail?
The Dominican Constitution calls for the annual 27 February Independence Day presidential speech to be a rendition of accounts of the passing year. Carlos Pimentel, executive director of Participación Ciudadana, a leading political watchdog group, remarked that President Danilo Medina instead endeavored to promote his achievements from a political party perspective and consolidated data from 2012 to 2018 in his rendition of accounts on Wednesday, 27 February 2019 at the National Assembly. The speech was broadcast by a record-breaking number of TV and radio stations in the country.
Pimentel criticized the selectivity of data used by Medina. He said that Medina used World Economic Forum Competitiveness Report data on infrastructure where the DR is ranked as above average but then did not mention policies adopted or to be adopted relating to transparency and the reduction of rampant corruption in the country. The same World Economic Forum Competitiveness Report lists the Dominican Republic as above average in corruption.
PRM deputy Faride Raful observed that the announced minimum wage hike for the public sector is just a strategic move to enhance the political acceptance of President Medina among public employees.
In reporting on the speech and the President’s concluding words on being willing to pay the price that is needed to serve the country, the Listin Diario wrote that the phrases are being interpreted by political analysts preparation for his possible bid for reelection. "I am first, day after day, hour after hour, willing to pay the price that is needed, to serve our country," said Medina in his concluding remarks to the National Assembly in Congress. "And today, almost seven years later, I say again: I'm here for the difficult. Yes, for the difficult," he said.
The Listin Diario observed that on the outskirts of the Congress building, thousands of Medina followers that had come from different points in the country, promoted his re-election, waving flags and shouting campaign slogans.
President Medina has said it would announce in March 2019 his intention to seek the presidential candidacy for the ruling PLD party.
The speech was the longest ever by the President who has spoken in 2013, 2014, 2015, 2016, 2017 and 2018. It was 16,882 words long. President Medina read for two hours and 29 minutes from the teleprompter at the National Assembly.
In his speech, Medina spoke of the resilience of the Dominican Republic to maintain high growth and low inflation despite external shocks. He highlighted the achievement of his government in maintaining the regional lead in GDP growth. He cited that stats for his six years in government: 2013: 4.9%; 2014: 7.6%: 2015: 7%; 2016: 6.6%; 2017: 4.6%; and 2018: 7%. This compares to the regional average of 1.2%. Medina said this was accomplished while keeping inflation also at regional lows throughout the same period. He observed inflation in 2018 was 1.17%, the lowest in the past six years. He said poverty declined from 39.7% in 2012 to 23% in 2018, meaning 1.5 million people are no longer living in poverty. He mentioned the creation of 770,000 jobs during his government. He said the country produces 85% of the food it consumes and exported US$11 billion to 100 countries. He spoke with proud of what he described as the most ambitious reforestation program in the region.
https://eldia.com.do/participacion-...n-su-discurso-danilo-jugo-mucho-a-las-cifras/
http://hoy.com.do/tambores-de-reele...io-que-sea-para-seguir-sirviendo-a-este-pais/
https://www.diariolibre.com/actuali...-de-rendicion-de-cuentas-de-medina-BB12201167
https://listindiario.com/la-republi...leccion-flameo-en-discurso-y-en-los-allegados
https://www.cdn.com.do/2019/02/27/discurso-completo-pronunciado-danilo-medina-este-27-febrero-2019/
https://www.elcaribe.com.do/2019/02/28/panorama/politica/piden-reeleccion-de-danilo-medina/
Print media on the 27 February Danilo Medina speech
With President Danilo Medina’s speech on 27 February 2019 being the headline news for the day, the leading print media dedicated their editorials to the president. Read these here:
http://hoy.com.do/discurso-y-males-de-gran-tamano/
https://listindiario.com/editorial/2019/02/28/555487/esperanza-y-expectativas
https://www.elcaribe.com.do/2019/02/28/opiniones/editorial/estimulante-discurso/
https://www.diariolibre.com/opinion/am/buen-discurso-ambiciosas-metas-PL12199475
https://www.cdn.com.do/2019/02/27/discurso-completo-pronunciado-danilo-medina-este-27-febrero-2019/
Labor representative rejects flexible working hours and more
Rafael Abreu, the labor sector representative in the employers-labor and government committee that discusses changes to the Labor Code and minimum wages, says no labor gain will be touched. Abreu is president of the Confederación Nacional de Unidad Sindical (CNUS). Reported in Diario Libre, Abreu highlighted four points that are not negotiable in the Labor Code discussions. These are the reduction in the severance payment for new employees, flexibility in working hours and days, flexibility in first job working hours, and maternity rights.
Abreu says he will take 15 days to study a proposal presented by employers with the backing of the Ministry of Labor. The proposal calls for flexible work hours and days. It mentions capping severance payments to three years and to a sum equal to minimum wage for five years. Employees who have accrued severance payments will maintain these. The employers have also proposed the possibility of working four days a week without exceeding 12 hours per day or 60 hours per week.
https://www.diariolibre.com/economi...n-no-aceptaran-cambios-en-cesantia-BK12183615
https://www.diariolibre.com/opinion/am/el-dia-libre-GK12183764
Punta Catalina thermoelectric plant performance test
The Public Electricity Corporation (CDEEE) executive vice president Rubén Jiménez Bichara announced the first of two units of the Punta Catalina coal-fired power central was connected to the national power grid system (SENI) for a 30 minute test operation on 27 February 2019, in commemoration with Independence Day. The tests are supervised by General Electric, manufacturer of the turbines. As reported, during the test, 36.5 megawatts were contributed to the national power grid.
Punta Catalina Power Central is located in southcentral Hatillo, Azua. It has a gross capacity for 770-megawatts. It encompasses two power plants with capacity to contribute 337 MW each to the national power grid.
The project is the most important single infrastructure work committed by the Medina administration. The power plant has been under construction for five years by Maire Tecnimont SpA, Construtora Norberto Odebrecht S.A and Ingenieria Estrella SRL. The project has an estimated cost of more than US$2 billion.
Jiménez Bichara said in the first two weeks of operation the power plant is expected to contribute 250 megawatts to the SENI and 300 MW by May when the second unit of the complex is scheduled to enter into operation. The power plant was built to contribute 35% of the total power consumed in the Dominican Republic and provide the government savings of US$400 million in lower cost energy generated.
To reduce the impact on the environment, a modern pipe system was installed for the transfer of coal from the coal terminal with a capacity of 80,000 tonnes to the power plant.
US-based company Xcoal Energy was contracted to supply 462,000 metric tons of coal to the Punta Catalina power plant during its test phase.
The power plant was funded by Dominican government, with loans from the Societe Generale (France), Banco Santander (Spain), ING Bank (Netherlands), Unicredit (Italy), and Deutsche Bank (Germany), after initial plans for Brazilian export agency financing BNDES collapsed after a US court convicted Odebrecht of paying bribes to secure contracts around the world. The Dominican government is seeking new investors for the project.
http://hoy.com.do/1880420-2/
https://listindiario.com/la-republi...punta-catalina-realiza-primera-sincronizacion
https://www.cdn.com.do/2019/02/27/c...punta-catalina-al-sistema-electrico-nacional/
https://www.sourcewatch.org/index.php/Punta_Catalina_Power_Central
WCG Energy starts Monte Plata solar power project
WCG Energy Ltd announced the start of construction of a US$78 million solar energy plant in Mata de Palma, Guerra in Monte Plata province on Monday, 25 February 2019. The project is 45 minutes from the city of Santo Domingo. The plan is for it to generate 110 million kilowatt hours, an amount sufficient to supply the present energy demand of more than 80,000 inhabitants in the eastern region.
Serge Gharibian, president of the company, came for the symbolic start of construction. Also attending was Angel Canó, president of the National Energy Commission, and Ruben Jimenez Bichara, executive vice president of the Public Electricity Corporation (CDEEE) and senator Charlie Mariotti (PLD-Monte Plata), among others. Gharibian remarked that the project will be a model to follow for the production of renewable energy.
The company had been authorized to carry out preliminary studies for the power generation company in 2012.
https://www.diariolibre.com/economia/inician-un-proyecto-de-energia-solar-de-50-mw-CK12181074
https://www.cne.gob.do/proyecto-fotovoltaico-wcg-energy/
Public school teacher strike called off
The Dominican Public School Teachers’ Association (ADP) cancelled the sit-down protest called for this Thursday, 28 February 2019 to protest the government’s failure to comply with agreements that are now over two years old. The head of the group, Xiomara Guante, told reporters some overdue payments had been received.
The ADP had said that if the Ministry of Education does not fulfill its obligations with regards to the arrears stemming from teacher assessments, they would call for a demonstration by the national assembly of public school teachers on Friday, 1 March, in front of the Ministry of Education on Av. Máximo Gómez in Santo Domingo.
Newly appointed Education Minister Antonio Peña Mirabal to work with teachers for better quality in public education. He said that he would invite the members of the ADP executive committee to participate in new talks.
https://www.diariolibre.com/actuali...centracion-para-el-proximo-viernes-MK12189050
Unibe becomes first bilingual Dominican university
Rector Julio Amado Castaños Guzmán of the Universidad Iberoamericana (UNIBE) announced on Monday, 25 February 2019 that English is now an official second language at the private university for undergraduate and graduate courses. Students can now choose courses from a selection in English and Spanish.
https://www.unibe.edu.do/unibe-se-c...era-universidad-del-pais-con-oferta-bilingue/
DR trade deficit increases in 2018
2018 closed with a trade deficit of US$11.11 billion. In 2017, the trade deficit was already a high US$9.18 billion. The data was compiled by the Programa de Estudios del Desarrollo Dominicano (PED), under the Centro de Estudios Económicos y Sociales P. José Luis Alemán SJ of the Pontificia Universidad Católica Madre y Maestra (PUCMM), the largest Dominican private university. The program is directed by social anthropologist Fernando Ferrán.
Global trade was US$30,065 million in 2018. This included US$9,473.9 million in exports and US$20,591.1 million in imports.
Barómetro de Comercio Internacional (BCI) newsletter of the PED explains duty free zones were the most dynamic exporters, with US$5,757 million, or 61% of the total. These posted increases in exports of 9% compared to 2017.
Imports, on the other hand, were up 17.7%, according to data compiled by the Customs Agency (DGA).
https://www.eldinero.com.do/78655/la-pucmm-deplora-aumento-del-deficit-comercial-de-rd-en-2018/
David Lewis: The Trump Agenda and the Dominican Republic
Regional business and trade policy expert, David Lewis of the Washington, D.C.-based advisory firm, Manchester Trade Limited, Inc., at the American Chamber of Commerce during the monthly luncheon on Wednesday, 20 February 2019, gave Dominican businessmen insights on what to expect from the Trump administration, especially regarding the 15-year old DR-CAFTA and future trade.
Lewis said the focus needs to be on achieving competitive adjustments with greater gains for the country as protection is gradually removed for several sensitive products. DR-CAFTA calls for zero tariffs by 2026.
"Forget about renegotiating and focus on how competitive adjustment is achieved, with no major damage and possibly higher profits," Lewis said. He made it clear the Dominican Republic was the success story for the US in the DR-CAFTA agreement. He highlighted the increase in total exports, the diversifying of these, an increase in US investment and the consolidation of a competitive export model based on national industrial exports, free zone exports, apparel, footwear, pharmaceuticals, medical devices, electrical and electronic devices and logistics. In his speech he spoke about the boom of services (tourism, ITC, and finances), highlighting that 65% of the GDP is services. He said the Dominican Republic had reported the best total exporter performance in the region.
And then he looked into the adjustments that are ahead as the tariff and quota protection that was intended to give local companies time to prepare their companies for US competition is gradually being phased out. Expect more US imports in stores as by 2020 the tariffs will be eliminated on nearly all agricultural goods by 2020. By 2026, powdered milk, rice, mozzarella and yoghurt will enter duty free.
Lewis said that the United States government is concerned that China might seek to position itself in the Dominican Republic to take advantage of trade privileges under DR-CAFTA.
“To position the Dominican Republic as an attractive commercial reference in the region, more and better products should be exported, more investments attracted by offering a better business environment,” he said. “No matter how good a free trade agreement or the development of foreign trade is, without these components there will be a serious problem in the sustainability of the sectors," he said. He called for strengthening public-private alliances for stronger institutions and strengthening of trade and investment with the United States.
Lewis also stressed how because of its strategic geographical location, the Dominican Republic can play a crucial role participating in important agreements signed by Latin America with the United States.
In his talk, he shared what the United States Trade Representative (USTR) has on file for pending with the Dominican Republic. These include the technical barriers to trade in the regulation of steel rebar, food labeling, tariffs and quota allocations, management of import licenses and lack of transparency and anticorruption provisions for Dominican government procurement.
https://www.eldinero.com.do/78405/d...n-a-rd-libres-aranceles-en-2020-por-dr-cafta/
ttps://www.eldinero.com.do/78218/resaltan-dr-cafta-ha-sido-beneficioso-para-republica-dominicana/
https://listindiario.com/economia/2...en-lista-con-8-puntos-sin-cumplir-el-dr-cafta
https://www.elcaribe.com.do/2019/02...l-acuerdo-con-estados-unidos-puede-revisarse/
http://hoy.com.do/1877060-2/
https://ustr.gov/sites/default/files/files/Press/Reports/201
8%20National%20Trade%20Estimate%20Report.pdf
JCE to go ahead with automated voting system
The Central Electoral Board (JCE) announced on Monday, 25 February 2019 that it is calling for a fast-tracked bids for the automated voter system to run with the software designed by their IT department. The system would be tested for the 6 October 2019 primaries that the JCE will organize for five political parties -- Partido de la Liberación Dominicana (PLD), Partido Revolucionario Moderno, Partido Revolucionario Dominicano, Alianza Pais (AlPais) and Opción Democrática (OD).
The JCE also approved the hiring of an international auditing firm to carry out the technical audit of the software developed by the JCE.
If the system proves to be successful, it will be used for the general elections scheduled for 2020.
https://www.diariolibre.com/actuali...para-adquirir-equipos-de-primarias-DK12181174
Odebrecht case speculation: Prosecutor error could kill case
State prosecutors did not act after having been authorized by Supreme Court Judge Francisco Ortega to travel to Brazil for personal interviews to Odebrecht officers who had shared accusatory comments regarding bribes paid in the Dominican Republic. There is now speculation this could kill any case the Dominican state has against the short list of seven the Attorney General has accused of taking bribes. Odebrecht revealed during the US court hearings that it had paid US$92 million in bribes in the Dominican Republic to get government contract work.
Diario Libre published on 26 February 2019 the authorization from the Supreme Court judge. Attorney General Jean Alain Rodríguez had requested the authorization on 2 November 2017, giving the prosecutors ample time to coordinate traveling to Brazil for the questioning of former Odebrecht general manager, Marcelo Bahía Odebrecht, former general manager in the Dominican Republic Marco Vasconcelos Cruz, and others.
Miguel Valerio, lawyer of former Public Works Minister Víctor Díaz Rúa, made known to the press the existence of Resolution 0073-2017 and the lack of diligence of state prosecutors. Valerio has called for the validity of the accusatory statements by the Odebrecht officers to be annulled as per the local legal requirement of these having to have been interrogated in person.
https://www.diariolibre.com/actuali...recht-y-la-procuraduria-no-lo-hizo-IK12187438
Remains of second diver lost in Dudú lagoon found
Rescue workers announced they located the remains of 44-year old Carlos Basso, the second missing Italian diver in Dudú Lagoon on Tuesday, 26 February.
The rescue operation included specialists from the Dominican Republic Speleological Society (DRSS), Center for Emergency Operations (COE), Civil Defense, Red Cross, National Police, Ministry of Tourism, among other entities. 10 divers endeavored in the search since the divers went missing on Saturday, 9 February 2019.
The remains of 57-year old diver Carlos Barbieri was recovered on Monday, 11 February. Barbieri resided in Las Terrenas where he was the owner of a construction material company located in the city of Sánchez, Samaná.
https://www.elcaribe.com.do/2019/02/27/panorama/region-norte/recuperan-cuerpo-de-otro-buzo-en-dudu/
https://elnuevodiario.com.do/encuen...buzos-italianos-desaparecidos-en-laguna-dudu/
https://www.dr-ss.com/safety
La Casa de Bernarda Alba at the National Theater
Friday, Saturday and Sunday, 1-3 March 2019, the Sala Ravelo of the National Theater presents “La Casa de Bernarda Alba,” a Dominican version of the famous Spanish play by Federico García Lorca. Starring María Castillo, directed by Indiana Brito. 8:30pm on Friday and Saturday, 6:30pm on Sunday. Tickets for sale at the National Theater and online at Uepa Tickets.