During a press conference held yesterday, Thursday 13 December, the vice-president of the State Electric Companies (CDEEE), Ruben Jimenez Bichara, announced that the process of paying US$300 to the electricity generators had started, so that any delays in the process would be limited to the paperwork between the financial entities and the companies.
He said that some generators had met with the banks and presented their invoices, in order to later receive the payment of the debt. The use of factoring, with which the debts are being paid, is being negotiated through a group of banks that is led by the Banco de Reservas.
The Electricity Industry Association (ADIE) recently expressed its concerns over the arrears in the payments to the generators, on the grounds that the accounts payable in arrears over four months were over US$700 million.
Jimenez Bichara defended the use of factoring for the payment of the debt, by explaining that is an economic measure that is frequently used to try and improve the amount owed before year-end. He said that there would not be any increase in the debt, because it is merely a change of hands. [Factoring is defined as ‘a financial transaction whereby a business sells its accounts receivable to a third party (called a factor) at a discount.’]
On another topic, Bichara reported that the CDEEE has already held meetings with AES Dominicana and they were due to meet with representatives of Ege-Haina yesterday, Thursday 13 December to prepare the groundwork for the pact that the administration seeks to reach with the generators.
He said that before the end of the year they would firm up the tender process for the construction of two coal-fired plants that will produce 600 megawatts.
“It will be a turn-key tender, where the state will become the owner of the generators, which is different from the previous tender where the state would just buy the electricity.”
The executive vice-president of the CDEEE said that the corporation has to adjust the budget assignments.