2003News

US$500-million credit line questioned

El Caribe’s reporter Mercedes Gonzalez questions the need for a US$500-million credit line from Mexico and Venezuela in order for the state to lower the electricity rates. Former state utility manager, Radhames Segura, a member of the PLD opposition party, was interviewed by the reporter. According to Segura, the two distributors invoice RD$1.5 billion a month, but monthly cash flow is RD$1.1 billion, generating a RD$400-million shortfall. To this sum, the government must add the RD$140 million they must pay UF every month. Segura says that the government does not have the capacity to make these payments and that the deal for a US$500-million line of credit would allow the government to pay for the energy at a rate of just RD$0.03 a kilowatt, passing the high cost of power generation for the future. Presidential elections are slated for May 2004.