According to the executive vice president of the Public Electricity Corporation (CDEEE), Ruben Jimenez Bichara, the lower prices of crude oil and its derivatives on the international markets have allowed for a US$1 billion reduction in the electricity sector subsidy. Some of these savings have been invested in the construction of the Punta Catalina coal-fired generation project.
In an interview yesterday morning, Wednesday 3 February 2016, Jimenez Bichara said that some US$1.5 billion in subsidies have been reduced by nearly US$1 billion.
He said that it was most beneficial for the country to invest resources in an asset as important as this new generation project instead of wasting them on additional subsidies.
“The more money we invest, the cheaper this project will be,” said Jimenez Bichara referring to the Dominican state’s investment of some US$800 million.
He said that there had been many attempts to block the international financing, “letters were sent to the banks that finance the project and have continued being sent, they have threatened international lawsuits and we are aware that those behind this process are not those who are financing the project, because they have been criticizing, financing and sending letters for years.”
Jimenez Bichara argued that the fact that a pool of banks led by the Deutsche Bank of Germany disbursed US$200 million of agreed on US$650 million for the project on 31 December 2015 should demonstrate that the coal-fired generation project has received environmental endorsement.
