NewsWhore
07-17-2008, 04:30 PM
Energy expert lawyer, Marisol Vicens Bello writes today that there is little transparency in the government dealings with PetroCaribe oil financing agreement between Venezuela and the DR. She says the agreement enables the country to pay only 50% of the oil purchased, and finance the remainder to 17 or 25 years with a soft interest rate of 1%. That is, future generations are being indebted by the present consumption of oil. Furthermore, she writes that few know how the "savings" are being used. She explains that during the PetroCaribe Summit held in Venezuela last week, Venezuela agreed to increase to 60% the financing portion. Hacienda Minister Vicente Bengoa has said this will represent US$907 million in "savings" if the country continues to buy 30,000 barrels per day, or US$1.2 billion if the amount is increased to 40,000 barrels per day, or US$1.5 billion, if it is increased to the limit of 50,000. As a result of the PetroCaribe agreement, the debt with Venezuela that before PetroCaribe was US$43 million, as of 2008 has increased to US$835 million.
"That is why it is indispensable that all Dominicans understand it is not a gift, but a loan that increases our foreign debt," she writes.
She observes that Hydrocarbon Law 112-00, that heavily taxes consumers for fuel purchases, had precisely the objective of ensuring the funds would be available for the payment of the foreign debt by way of an automatic indexation procedure. But now, because of PetroCaribe, while the government is collecting more taxes, it is actually paying less, she explains.
The present administration is the winner having secured a significant source of additional funds whose use is not transparent. She speculates that the funds have been used to pay for the production of electricity.
Vicens is also critical of the possibility of selling a percentage or all of the shares of the Dominican Petroleum Refinery to Petroleos de Venezuela, S.A. (PDVSA). She says that the same arguments of national security the government used to decide to purchase Shell's 50% participation in Refidomsa, should again apply to dealing with the government of Venezuela, "that regardless of solidarity and friendship it may be appear to be showing at this time, responds to its own interests that are not as candid as one would be lead to believe."
She alerts: "PetroCaribe is an instrument of power at the service of Commander Chavez within his particular agenda."
Furthermore, she points out that we should become aware that PetroCaribe feeds a culture of high consumption of fuel, it mortgages the future with a growing foreign debt and increases our dependency not only on a quasi single supplier but on a foreign state, that criticizes Yankee imperialism, but seems in a mind of instating a new imperialism in Latin America."
More... (http://www.dr1.com/index.html#2)
"That is why it is indispensable that all Dominicans understand it is not a gift, but a loan that increases our foreign debt," she writes.
She observes that Hydrocarbon Law 112-00, that heavily taxes consumers for fuel purchases, had precisely the objective of ensuring the funds would be available for the payment of the foreign debt by way of an automatic indexation procedure. But now, because of PetroCaribe, while the government is collecting more taxes, it is actually paying less, she explains.
The present administration is the winner having secured a significant source of additional funds whose use is not transparent. She speculates that the funds have been used to pay for the production of electricity.
Vicens is also critical of the possibility of selling a percentage or all of the shares of the Dominican Petroleum Refinery to Petroleos de Venezuela, S.A. (PDVSA). She says that the same arguments of national security the government used to decide to purchase Shell's 50% participation in Refidomsa, should again apply to dealing with the government of Venezuela, "that regardless of solidarity and friendship it may be appear to be showing at this time, responds to its own interests that are not as candid as one would be lead to believe."
She alerts: "PetroCaribe is an instrument of power at the service of Commander Chavez within his particular agenda."
Furthermore, she points out that we should become aware that PetroCaribe feeds a culture of high consumption of fuel, it mortgages the future with a growing foreign debt and increases our dependency not only on a quasi single supplier but on a foreign state, that criticizes Yankee imperialism, but seems in a mind of instating a new imperialism in Latin America."
More... (http://www.dr1.com/index.html#2)