Financial agencies from Germany and the United Kingdom have advised the Dominican government that the payments pending in the Cogentrix dispute might harm the nationÕs status in the international money markets. Cogentrix, a 300-megawatt power plant installed in southeastern San Pedro, is seeking payment of a US$39-million dollar debt before it will agree to renegotiate its contract with the Dominican government. Three of the four principal creditors sent a letter to Finance Minister Jose Lois Malkum requesting payment be made on the debt, and suggesting that failure to pay could result in serious financial problems for the Dominican Republic in future financial negotiations. The main problem seems to be that the contract between the government and Cogentrix was approved by the National Congress and enacted as a law. Cogentrix has repeatedly refused to discuss any renegotiation of its contract until the funds owed are restored. The complete letter can be seen here: http://www.elcaribe.com.do/periodico_impreso/cuerpos/intereses/intereses/interes1.asp
