Spokesmen for the Association of Suppliers of Electrical Materiales (Asume) oppose privatizing the management of the power distribution companies in the Dominican Republic. The three largest utilities are owned and run by the Dominican state after the privatizing of these (Union Fenosa) during the Leonel Fernandez government did not work out.
The suppliers advocate that the government must first study the past experiences, and then establish the pertinent controls and regulations to avoid discretionary powers. They said the government would be better off hiring professional managers for the Edes.
The business people doubt the private sector is willing to assume the responsibilities of the public service aspect of the utilities.
The press release says that past experiences with public private alliances have not been positive for the country.
“We consider that it would be healthier to explore human resources with competent capacities that are Dominican and know the technical-administrative management of the distribution companies,” is the position of ASUME, when opposing the privatization of the management of the Edes.
In an interview with Listin Diario, last week Sigmund Freund, director of the Public Private Alliance Agency ((DGAPP) said the government is working to pass the operation and management of the electricity distribution companies (Edes) to the private sector through a public-private partnership.
The official said the government is preparing the project.
Freund added that this plan has been discussed with international firms and the Unified Council of the Edes and the Electricity Cabinet. He emphasized that the idea is not to privatize the power plants, but to capitalize them.
The plan is not to sell the assets, but that the private sector be in charge of the management of the distributors and of executing an investment plan that will entail close to US$1.60 billion in the next six to seven years.
With these resources, Freund said, the private sector will be in charge of improving the electrical infrastructure, substation lines, commercialization system, and national energy system efficiency.
“We are putting management in the hands of the private sector,” he announced. He says the government at present has US$1 billion in losses in the distribution companies because there is no efficient management.
Freund spoke when interviewed during a meeting at Listin Diario with the president of Editora Listín Diario, Manuel Corripio; the director of Listín, Miguel Franjul, and the editor of the Economy section, Cándida Acosta.
This week, electrical engineer Bernardo Castellanos criticized the passing of contracts from the closed Public Electricity Corporation (CDEEE) to the power distributors.
Read more:
El Dia
Listin Diario
DR1 News
1 December 2021