The Comisión de Reforma de la Empresa Pública, in a meeting with President Leonel Fernández informed that the CDE will be privatized in January 1999 with an injection of private capital. The government is breaking down the state electricity utility into smaller companies. The new companies will be 50%-50% ventures between the state and private investors. The privatization is expected to inject US$500-US$800 million into the economy, as well as reduce the burden on government finances of millionaire subsidies now made to these money-losing inefficient organizations. The state will remain with the 100% ownership of hydroelectric generators and the high voltage lines. Companies that will be submitting bids in December include: Electricité, Enron Caribe, Gener Amoco Power Development, Iberdrola, Unión Fenosa, Coastal Power Dominicana Generation, Empresas Emel-PPL Gobal, Edesa International, Constellation Power International Investments among others. The CREP is also dealing with the privatization of the CEA, which lost RD$900 million in 1998. The CDE is part of a group of state entities, that also includes Molinos Dominicanos and the State Sugar Council (CEA) that are among the first to be privatized by the state. Antonio Isa Conde, president of the commission said that the CDE has been appraised at US$600-US$700 million, but that this is not the CDE’s market value.
