NewsWhore
06-02-2009, 03:00 PM
The vice president of the Dominican Corporation of State-run Electricity Enterprises (CDEEE), Radhames Segura, said yesterday that the deal that they made with the power distributor Ede-Este was not for the purchase of the shares, but rather a transfer of the type known as "avoided costs".
He explained that if they would have had to pay lawyers US$60 million and if they can make a deal for less than half of that in order to get out of litigation, and at the same time they [Ede-Este] hand over the shares and the administration, "it is a great deal". He explained the company would voluntarily hand over the shares, without the government having to pay a cent for them.
Segura reported that the final deal closing of the operation will be on 30 June at the latest. The US holding company, Trust Company of the West (TCW), would withdraw the lawsuits against the Dominican government. Segura said that as of today, they have spent US$17.8 million on just one lawsuit. The total amount paid as of today is US$15.8 million for arbitrage and slightly more than US$2.0 million is owed. Trust Company of the West (TCW), which initially partnered with the government wanted out of its contractual obligations because they felt the energy business in the DR was not financially viable.
Segura said the criticisms from the business community regarding the government's takeover of the third power distribution company were unfair. In his opinion, business community should have supported the government since he says the TCW lawsuits are an insult against national interests. He insisted that the government supports free enterprise, but only if it is a transparent business and the actions of TCW "are totally reproachable for the public sector and should be so for the private sector."
Segura mentioned that the 6.4% electricity tariff increase in place as of June will produce US$25 million in seven months.
More... (http://www.dr1.com/index.html#4)
He explained that if they would have had to pay lawyers US$60 million and if they can make a deal for less than half of that in order to get out of litigation, and at the same time they [Ede-Este] hand over the shares and the administration, "it is a great deal". He explained the company would voluntarily hand over the shares, without the government having to pay a cent for them.
Segura reported that the final deal closing of the operation will be on 30 June at the latest. The US holding company, Trust Company of the West (TCW), would withdraw the lawsuits against the Dominican government. Segura said that as of today, they have spent US$17.8 million on just one lawsuit. The total amount paid as of today is US$15.8 million for arbitrage and slightly more than US$2.0 million is owed. Trust Company of the West (TCW), which initially partnered with the government wanted out of its contractual obligations because they felt the energy business in the DR was not financially viable.
Segura said the criticisms from the business community regarding the government's takeover of the third power distribution company were unfair. In his opinion, business community should have supported the government since he says the TCW lawsuits are an insult against national interests. He insisted that the government supports free enterprise, but only if it is a transparent business and the actions of TCW "are totally reproachable for the public sector and should be so for the private sector."
Segura mentioned that the 6.4% electricity tariff increase in place as of June will produce US$25 million in seven months.
More... (http://www.dr1.com/index.html#4)