Twenty five power plants, most in bad conditions, were awarded to two firms that will capitalize new companies to operate these under private management. New Caribbean Investment and Seaboard were granted the contracts to operate the Itabo and Haina generation parks yesterday during the tender held at the Hotel Embajador yesterday. The tender was organized by the Commission for the Reform of Public Enterprise (CREP). The tender was transmitted by RTVD. New Caribbean Investment, a firm made up by Gener, S.A., from Chile and Coastal Power Generation, bid US$177,777,777 to become proprietors of 50% of the shares of Empresa Generadora Itabo, S.A. Seaboard bid US$114.6 million. The government had set a value of US$113 million on the company. Only Seaboard bid for Empresa Generadora Haina, S.A., offering US$144.5 million for the 50% shares of the company that was valued at US$143 million. Seaboard has been selling energy to the state and private companies for several years now, with plants located in Puerto Plata, Santo Domingo and the East Coast. The Seaboard affiliate that won the bid to manage Haina parks, is made up of Seaboard Corporation, Enron Caribe, Commonwealth Development Corporation, Basic Energy (partner of the Consorcio Energético Punta Cana Macao), and the Caribbean Basin Power Foundation. The government thus completes the process of choosing the private partners for the privatization power distribution and generation. The new firms will contribute US$322,277,777 to the expansion and improvement of the nation’s electricity service. Last month, Union Fenosa Desarrollo and Acción Exteriores won the right to 50% shares in the distributor companies of the North and the South with US$211,901,804, while AES Distribution Dominicana was awarded the Distribuidora del Este, S.A. with an investment of US$109,304,687. The new companies are expected to begin operating in a month’s time. Generadora Haina, now to be operated by New Caribbean Investment, is made up by units Haina 1, 2, 3, 4 and 5 ; Puerto Plata 1 and 2, Barahona and San Pedro de Macorís. Also the gas units Haina-Gas, San Pedro and Barahona, and diesel plants in Manzanillo and Pedernales. Together they have an installed capacity of 663.9 megawatts, but are only producing at 36% of their capacity, generating 241 megawatts. Generadora Itabo, S.A. is made up by steam powered Itabo 1 and 2 and Santo Domingo 5 and 8; turbogas Itabo 1 and 2; San Pedro 4 and 5, Timbeque 1 and 2; and the diesel unit of Sabana de la Mar. At year’s end 1998, their installed capacity was 573 megawatts with an available 448 megawatts on line. As part of the agreement, the new partners assume the responsibility for the labor benefits of the employees and all debts with suppliers. Felipe Ribbeck, speaking for Coastal-Gener said that in a five year period they would invest US$400 million.<\/p>\n","protected":false},"excerpt":{"rendered":"
Twenty five power plants, most in bad conditions, were awarded to two firms that will capitalize new companies to operate these under private management. New Caribbean Investment and Seaboard were granted the contracts to operate the Itabo and Haina generation parks yesterday during the tender held at the Hotel Embajador yesterday. The tender was organized … <\/p>\n