2005News

Foreign experts in EdeSur

As part of the agreement the government signed with the World Bank (WB) to guarantee the financial feasibility of the energy distribution companies, two foreigners recommended by the multi-lateral organization have arrived and will be managing EdeSur’s distribution and marketing departments. El Caribe reports that Chilean Alejandro Paul Gonzalez and Peruvian Ricardo Jose Arrese are here to make the service more efficient and increase collections from a greater number of users. A press release states that Ruben Bichara will continue as Manager of EdeSur. The Vice President of the corporation of state-owned electric companies (CDEEE), Radhames Segura, had said that the Manager of EdeNorte, Fernando Rosa, would be substituted by Peruvian Manuel Suarez, but this information could not be confirmed yesterday. EdeNorte and EdeSur, which supply almost 70% of the total demand, were re-purchased by the government during the last government and their privatization is part of the current administration’s strategy to solve the energy crisis. The crisis became more acute during the past quarter and reached its climax with the recent general blackouts which were attributed to faults in the transmission lines. The goal of using foreign experts in these companies is to increase collections by between 70% and 80%. Currently, 47% of users do not pay for energy, causing the government to have to subsidize these companies. According to the Superintendence of Electricity, RD$1.39 billion have been disbursed in subsidies this year alone. Listin Diario reports that the two experts’ contracts were signed yesterday by the president of EdeSur’s Board of Directors, Rafael Alcantara, in the presence of Manager Ruben Bichara Jimenez and the other members of the Board.