CDEEE and Fonper announced they have taken over the ownership of Punta Catalina Thermoelectric Central. The three government-owned power distribution companies (EdeNorte, EdeSur and EdeEste) formalized the transfer of their rights to the Public Electricity Corporation (CDEEE) and the Capital Fund of Reformed State Enterprises (Fonper). A press release explains the move is to facilitate the constitution of the Central Termoeléctrica Punta Catalina corporation, of which CDEEE will own 99.2% and Fonper 0.8%.
The capital contribution that makes the CDEEE the majority shareholder of the new company is US$617.0 million, while Fonper will contribute US$5 million.
According to data provided by the Ministry of Hacienda (Treasury), the total investment made by the Dominican State in the CTCP as of last October is US$2,372,917,536.05, from which the US$622 million capital contribution to be made by CDEEE and Fonper is subtracted.
As established by the Ministry of Hacienda, the rest of the resources destined to the project, equivalent to the sum of US$1,750,917536.05, must be registered in the commercial company CTCP, S.A., in the form of accounts payable by said company to the Dominican state, through the Treasury. This debt will generate an annual interest of 9.7165% on the outstanding balance and will be amortized in 360 equal monthly installments, beginning on 20 January 2020.
Principal and interest payments will be US$15 million per month, equivalent to US$180.0 million per year.
In a communication dated 14 October 2019, the Treasury indicated that as the owner of the thermoelectric plant, via CDEEE and Fonper, the Dominican state expects to receive a reasonable annual return.
Journalist Altagracia Salazar on her Sin Maquillaje radio talk show criticizes the deal. She asks out loud, “how can such a bad deal be struck?”
Follow the story in Spanish:
YouTube
5 December 2019