2004News

Another call to annul

Frank Raineri, one of the more illustrious figures in the Dominican Republic?s hotel industry, called on President Mejia to rescind an agreement that advocates denying the smaller private generators access to duty-free fuels. These so-called ?non-regulated? power producers, about 53 in number, are allowed by law to import fuel for their generating plants duty free, but a top-secret agreement between the CDEEE and the large generation units like Haina, Itabo and AES, appears to have infringed on this privilege. Rainieri told reporter Soila Paniagua from Hoy that the President was apparently misinformed about the deal as the clause that denies the access to duty-free fuel has not yet been activated. He said that to not disregard this agreement would generate huge deficits in the tourism sector, because a large number of the hotels are generating their own electricity and at current retail prices they would lose competitiveness and be tossed out of the market. The purchase of diesel fuel at current retail prices would easily lose the hotels money and cost thousands of jobs. Said Raineri, ?The President must issue this decree (to terminate the clauses that restrict access to duty-free fuel) in order to bring some tranquility to many sectors of the economy.? The former president of ASONAHORES said that disregard for laws and agreements is one of the things that creates uneasiness among investors. Rainiers specifically mentioned the General Law on Electricity, and pointed out that in areas such as Punta Cana there are no power lines from outside, forcing them to rely on independent power sources.