Two insurance companies in New York have warned the Dominican government that if before Wednesday, 14 January, the government does not pay the US$31-million debt that the CDEEE has with the Cogentrix generation plant in San Pedro de Macoris, they will invoke the loan guarantee with the Interamerican Development Bank (IDB), which amounts to US$300 million. If this were to occur, the failure to honor an international debt would imply a series of negative moves involving the country’s risk assessment, credit rating and foreign investment outlook. This news was given to the Listin Diario by a “credible source.” When Superintendent of Electricity George Reinoso was questioned by reporters from the Listin Diario, he replied that he did not have anything to do with the Cogentrix problem. “This (Cogentrix) matter is handled by the Minister of Finance and Cesar Sanchez.” When the head of the CDEEE was contacted, he refused to comment beyond saying that next week a mission was coming to the Dominican Republic. When the Listin Diario located Greg Osadetz, a regional director for CDC Global, which owns 35% of Cogentrix, he said that while he was aware of a letter that was sent to the loan officials, he lacked any precise data to make a formal statement. The Dominican government and Cogentrix have been at loggerheads since 2002 because the generating facility has been the only one of the private generators that has not submitted to a renegotiation of its contract. According to sources in the CDEEE, the state loses US$2.7 million per month if the facility is on-line, but it loses US$3.8 million per month if the plant is off-line.