Guillermo Amore, former president of the Dominican Telephone Company, once said: "The most expensive service is the one that is not rendered." Apparently, President Leonel Fernández has made his this philosophy in what regards the electricity service in the Dominican Republic. After decades of deficient service, it seems Dominicans will be getting a reliable electricity service, even though this may be one of the most expensive services in the world. The Listín Diario summarized the 1998-2002 program of the Corporación Dominicana de Electricidad, the state electricity utility, and plans for installation of power plants from 1998 through year 2002. As appears in the plans, the government itself will be installing most of the generation capacity. It will not wait for privatization of the CDE to take place. The government seems committed to resolve the electricity crisis, regardless of the higher cost to the nation and consumers. As per the 1998-2002 program, the CDE will be investing RD$7,382 million pesos to purchase new units and rehabilitate present power plants. The new plants to be installed or repaired will add 333.91 megawatts to the system in 1998, 303.80 in 1999, and another 364 megawatts in 2000, when the Fernández administration term ends. Another 380 megawatts are scheduled to be installed in year 2001. Congress has not passed a bill that would provide for the legal framework for the privatization and its promise that competition will bring more efficient production and lower costs that will benefit consumers. It is uncertain when this will occur. This has delayed the actual selling of power plants and operations to the private sector. The CDE has advanced with privatization efforts calling a tender with the assistance of investment banking company, Salomon, Smith Barney of New York. The Listín Diario has reported that the World Bank has criticized the government for making these investments at a time when the privatization has begun, following a world trend. Privatization of the state electricity utility follows a world trend. In the Americas, it began in Argentina and Peru in about 1990, and has swept the continent. Brazil has been privatizing its many federal and state owned companies for about two years, and nearly all should be sold by the end of 1999. It is felt that smaller, private companies do a better job of watching costs and eliminating unnecessary work. Also, by separating the company that distributes the energy from that which generates it, each company can concentrate on the type of business it does best. Bringing in foreign investors frees up the government to use its money for other things that are needed. Privatization in the DR has been delayed by the impasse between Congress and the government. Several congressmen favor a bill that would maintain privileges and favorable conditions extended during the Balaguer administration to private operations. The Fernández administration favors that all companies operate on the same set of rules. Corporación Dominicana de Electricidad Power Plant Plan for Years 1998-2002 POWER PLANT MW CAPACITY DELIVERY DATE Higuamo-I 34.04 April 1998 Higuamo-II 34.04 May 1998 Itabo-I 34.04 May 1998 Cayman Power I 30.00 May 1998 Itabo-II 34.04 June 1998 Haina 99.67 June 1998 Higuamo-III 34.04 December 1998 Total 1998 333.91 Cayman Power 30.00 January 1998 Privada I 20.00 January 1999 Privada II 20.00 February 1999 Haina III 70.00 February 1999 Privada III 20.00 March 1999 CDE-I 20.00 March 1999 Privada IV 20.00 April 1999 CDE-II 20.00 April 1999 Privada V 20.00 May 1999 CDE III 20.00 May 1999 CDE IV 20.00 June 1999 CDE V 20.00 July 1999 Contraembalse Monción 03.80 July 1999 Total 1999 303.8 Haina V 70.00 January 2000 CC BOO-I 98.00 July 2000 CC BOO-II 98.00 September 2000 Combined Cycle 98.00 October 2000 Total 364.00 Higuamo 40.00 January 2001 Itabo 40.00 January 2001 Haina 50.00 January 2001 Itabo III 125.00 April 2001 Itabo IV 125.00 November 2001 Total 2001 380 Hidro Monción 50 August 2002 Total 2002 50
