2004News

The World Bank money

Several commentaries from the World Bank being the solution to the current energy crisis came to a shuddering halt yesterday, when the newly-arrived representative of the WB, Christina Malmberg, told reporters of the Diario Libre that the bank had halted disbursements due to the repurchase of the Edes in 2003. The WB representative said that the disbursements could resume if a feasible solution that upholds the interests of the government, the agents of the sector and the consumers is presented to the institution. Malmberg told reporters Rafael Diaz and Diana de Miguel that neither the World Bank nor any other international financial institution would deny the DR financial support if it takes concrete steps towards a sustainable energy policy. She reminded the journalists that the government could obtain financial assistance in order to devise such a solution with outside technical assistance through a loan that was withdrawn from Congress by President Mejia. Over the past few days, the World Bank has been the subject of commentaries by officials of the energy sector, who argued that the suspension of the disbursement of US$40 million deepened the crisis even further. Electricity Superintendent George Reinoso, now back on the scene after a noted absence, told the press he had not received any documentation on the suspension of disbursements. Malmberg, on the other hand, said that the bank had sent an official communication to the Technical Ministry of the President, informing of the suspension of the loan payments that were designed to alleviate the current social crisis. The reason cited for the suspension was that the government had not fulfilled its obligations with respect to the macro-economic aspects of the project. Malmberg said: ?This was a major component of the adjustment loan that was broken once they decided to buy the Union Fenosa distributions businesses.? The World Bank representative said that the sector loan was only intended for US$25 million, an amount that ?was not going to solve the energy situation of the country when the monthly financial deficit is US$20 million.? According to Malmberg, the World Bank is very concerned about the situation and has been carrying on talks with both incoming and outgoing officials, as well as members of the transitional teams, in search of a solution, one that she said must be a Dominican solution.