NewsWhore
05-28-2008, 05:10 PM
Businessman Ernesto Vilalta, a prominent energy sector industrialist, alerts of the serious consequences of the failure of the government to curtail energy consumption counting on the PetroCaribe petrol credit. He alerted this consumption could increase with the government's purchase of Shell Co's 50% participation in the Dominican Petroleum Refinery. Vilalta, who coordinated the Electricity Forum, a private-government effort to find solutions to the present electricity problems, said that austerity measures need to be applied from the highest level in government.
Vilalta pointed out that although austerity programs have been announced, none of them have ever been implemented. He pointed out that in the discussions that preceded the last tax reform program, the government promised to save RD$17.5 billion, but nothing came of this promise. Regarding the proposal by economist Luis Vargas that the government should take over all generating facilities, Vilalta rejected the idea based on the fact that whenever the government takes over anything it becomes politicized and administered under a system of political patronage.
Economist Luis Vargas has also told Hoy newspaper that the government needs to be very careful in increasing the foreign debt of the country with Petrocaribe, without applying an austerity plan regarding energy consumption. "If not, we will be mortgaging the country's future," he pointed out. According to a recent report from the Ministry of Hacienda, US$300 million were allotted in the 2008 budget for financing from PetroCaribe. It is estimated that this will increase to US$510 million given the present conditions, and to US$800 million if the government purchases the shares of Shell in the Dominican Petroleum Refinery, as this will position it to be able to buy more than the present 50,000 million barrels imported from Venezuela. Hacienda Minister Vicente Bengoa reported that the government had budgeted a US$600 million subsidy for the electricity sector, and has received from PetroCaribe US$170 million that was applied to the electricity subsidy.
More... (http://www.dr1.com/index.html#6)
Vilalta pointed out that although austerity programs have been announced, none of them have ever been implemented. He pointed out that in the discussions that preceded the last tax reform program, the government promised to save RD$17.5 billion, but nothing came of this promise. Regarding the proposal by economist Luis Vargas that the government should take over all generating facilities, Vilalta rejected the idea based on the fact that whenever the government takes over anything it becomes politicized and administered under a system of political patronage.
Economist Luis Vargas has also told Hoy newspaper that the government needs to be very careful in increasing the foreign debt of the country with Petrocaribe, without applying an austerity plan regarding energy consumption. "If not, we will be mortgaging the country's future," he pointed out. According to a recent report from the Ministry of Hacienda, US$300 million were allotted in the 2008 budget for financing from PetroCaribe. It is estimated that this will increase to US$510 million given the present conditions, and to US$800 million if the government purchases the shares of Shell in the Dominican Petroleum Refinery, as this will position it to be able to buy more than the present 50,000 million barrels imported from Venezuela. Hacienda Minister Vicente Bengoa reported that the government had budgeted a US$600 million subsidy for the electricity sector, and has received from PetroCaribe US$170 million that was applied to the electricity subsidy.
More... (http://www.dr1.com/index.html#6)