As of late last night, the Dominican government took control of the electric distributors, Edenorte and Edesur, the long-standing targets of fervent protests due to deficient service. With this handoff, the blackouts will again be the government’s headache. According to the Listin Diario and the Diario Libre, the final negotiating sessions were long and drawn out, with Diario Libre calling them “a marathon”. The transfer of the distributors was completed as the newspapers reached the hour of their publication deadline. The economic advisor of the CDEEE, Edwin Croes, called the sale the largest economic transaction ever seen in the Dominican Republic. Some 14 contracts had to be reviewed before the signing could take place. According to reports in El Caribe, the government made its payment with a certified check dated 15 October, which caused the Union Fenosa people to get a little edgy. After the negotiating teams resolved that issue, there was a shareholder meeting, where the deal had to be approved. All of this dragged on well into the wee morning hours. Croes, who is to be operations manager of the new company, assured reporters that all was going according to plan. Cesar Sanchez, the current head of the CDEEE, will head the new company.
\nMeanwhile, Radhames Segura, former general manager of the CDE prior to privatization, commenting on the deal on TV last night said that if the Mejia government had not signed the Madrid Agreement in 2001 that extended the contracts of the Union Fenosa distributors from 5 years to 15 year terms, the country today could be saying goodbye to the failed company for a fraction of the present cost it is now taking on. The privatization contract signed in 1999 during the Fernandez government would have been up for renewal in 2004. The Madrid Agreement was negotiated in 2001 by the same executives that now will head the renationalized Edesur and Edenorte.
\nSegura also recalled that the Mejia government has been specially generous with Union Fenosa. Despite this being violatory of the Electricity Law, he said the government granted special conditions for the installation and operation of the Palamara and La Vega power plants. Moreso, he mentioned the government also helped the company finance the operation guaranteeing Interamerican Development Bank loan. He also pointed to the Union Fenosa accounting practices whereby power subsidiaries Edesur and Edenorte borrowed from the principal company, Union Fenosa at up to five times the market price financial cost.
\nVeri Candelario, reporting for CDN’s morning talk show, opened with a disparaging comment on the skills of the negotiators for the Dominicans, saying that the government had instead proved to be adept in negotiating in favor of Union Fenosa. <\/p>\n","protected":false},"excerpt":{"rendered":"
As of late last night, the Dominican government took control of the electric distributors, Edenorte and Edesur, the long-standing targets of fervent protests due to deficient service. With this handoff, the blackouts will again be the government’s headache. According to the Listin Diario and the Diario Libre, the final negotiating sessions were long and drawn … <\/p>\n