Despite the prompt denial by executive vice president Rubén Jiménez Bichara, it is now confirmed that a representative of the Dominican government did sign a memorandum of understanding with the China Huayang Economic and Trade Group Co., a Chinese state-owned company under the China Council for the Promotion of International Trade.
Acento published on 18 July 2018, that indeed the agreement was witnessed by over 40 persons that participated in a major event at The Great Hall of the People in Beijing on 8 July 2018, two months after the establishing of diplomatic relations.
Signing the agreement was José Rafael Santana Santana, who is the president of the board of the Public Electricity Corporation (CDEEE). Present was acting Dominican ambassador Rosa Ng Wu, who has served as the Dominican commercial representative in China. Cheng Qingtao, president of Huayang Group, signed for China.
The agreement does not specify details of the energy central and just refers to the intention of the state Chinese company in participating in the construction of a project in Manzanillo, Montecristi after a tender is held.
The information that the talks were regarding a power plant to be built in Manzanillo, Montecristi was known by the general public in the Dominican Republic after El Nacional and El Dia reported that Inframation News had released the news on its online platform that covers major infrastructure construction deals around the world.
Inframation News reported that the Manzanillo central would be built at the site of the Manzanillo port, for which a concession would be part of the deal. The agreement calls for a BOO or BOT project, with sovereign guarantees and the China Development Bank would lend the money. BOO means Build, Own, Operate; and BOT means Build, Operate, Transfer.
The proposal is for a 1,200 MW power plant that would be fueled by natural gas and included in the project is the construction of natural gas terminals as well as transmission and distribution systems from the power plant to the national power grid.
In the memorandum of understanding signed on 5 July, reportedly José Rafael Santana for the board of the CDEEE accepts that the Chinese government entity would use the port of Manzanillo for the construction and setting into operation of the power generating facility. This would be the first major project announced between the two countries since China replaced Taiwan three months ago.
Inframation News had reported that the Dominican Public Electricity Corporation (CDEEE) had signed a memorandum of understanding with China Huayang for the installation of a natural gas power generation plant in Manzanillo Bay. This was covered by El Dia. This would be a public-private concession for 30 years.
China Huayang Economic and Trade Group Co. is a Chinese state-owned company under the China Council for the Promotion of International Trade.
But after the news was published, CDEEE executive vice president Ruben Jimenez Bichara had promptly denied the signing of an agreement. He claimed the government had not reached any agreement of intent on future power generation plants with a Chinese corporation.
When the news was published two weeks after the meeting, executive vice president of the CDEEE once again denied the signing of any intent. On Wednesday, Jiménez Bichara clarified that the president of the board of the CDEEE was authorized to sign in China a memorandum of understanding for the companies that were interested in carrying out projects in the Dominican Republic. He downplayed the importance of the memorandum of understanding (MOU-HOA) and said this did not imply any concession on behalf of the Dominican state. “It is a document where the CDEEE shows that we are willing to listen to them, to do their studies and everything they require, because that is the freedom of the company,” Jiménez Bichara said in a document sent to El Nacional newspaper.
In a press conference on Wednesday in the presence of Santana and Jiménez Bichara, these clarified that the document offered general statements such as the government openness to facilitate feasibility studies, and that Huayang’s participation in the Dominican market was subject to complying with Dominican laws and procedures.
El Dia observed that the CDEEE has signed 27 memorandums of understanding in the past three months with potential energy investors, but for the only one that government officers traveled abroad to sign was that with the People’s Republic of China state company.
Acento published a copy of the memorandum of understanding that includes a clause of confidentiality. The MOU is limited 60 days, while the confidentiality restriction is two years.
The Manzanillo project requires congressional approval and a tender would need to be carried out to comply with the procurement law.
The Movimiento Conciencia Nacional, in a document sent to the media and reported by Hoy, speculated that the reason why the government officers have hidden the agreement is that the lower costs of the project would evidence the overvaluation that has occurred at the Punta Catalina coal-fired power plant under construction by the government with Odebrecht in Peravia province.
Read more:
CDEEE aclara no ha hecho acuerdo para nueva generación ni concesión portuaria
https://www.listindiario.com/economia/2018/07/19/524761/bichara-dice-que-lo-que-se-firmo-con-empresa-china-no-fue-un-contrato-definitivo
Movimiento dice Gobierno teme acuerdo con China revele sobrevaluación Punta Catalina
Bichara aborda “el misterio” sobre supuesta planta eléctrica contratada con China
https://mp.weixin.qq.com/s/t6HoY69rPtz0dK7EpOvzBg
https://acento.com.do/wp-content/uploads/Memor%C3%A1ndum-de-Entendimiento-No-Vinculante.pdf
https://www.quora.com/What-is-the-difference-between-MOU-and-MOA-Are-both-of-these-legally-binding
19 July 2018
