As reported in El Caribe today, AES Dominicana says that it notified the authorities on the sale of the AES Ede-Este distribution company to Dominican Energy Holdings. A letter dated 3 September was sent to Superintendent of Power Francisco Mendez and another dated 10 September was sent to the administrator of the CDEEE, Radhames Segura, in which the president of AES Dominicana, Julian Nebreda, indicated that the company contemplated transferring the totality of its shares in AES Distribution East LLC and AES Distribution East LTD to the possession of Dominican Energy Holdings. The letter explained that the leading shareholder of the company is TCW Energy Advisor LLC, a subsidiary of TCW Asset Management Company.
On the other hand, Segura says that while he received the notification of the company’s interest in transacting the sale, the company failed to offer them first to its partner, the CDEEE, as the contract signed with AES requires. The CDEE administrator told El Caribe that they are currently studying the sales transaction from a legal standpoint.
While AES Ede-Este sold their shares in the distribution operation, it will continue to manage company for another 10 years, as per the contract signed with TCW.
Meanwhile, Diario Libre reveals today that TCW Energy is not the only US company that holds Dominican sovereign bonds and has bought into Dominican power industry. The newspaper says that Goldman Sachs purchased shares of the Cogentrix power generation company at the end of 2003. The Cogentrix contract, signed during the first Fernandez administration, has been disputed for several years on grounds that it includes clauses that are very detrimental to Dominican consumers.