NewsWhore
06-23-2009, 03:20 PM
The American Chamber of Commerce (AmCham) said yesterday that the Dominican state has gone from being a regulator in the hydrocarbon and electricity sectors to becoming the dominant economic actor.
In a press release, the chamber maintains that this sends a worrisome signal to the people in the private sector and is likely to have a dissuasive effect on decisions concerning direct investment in these agents in these areas.
The statement issued by the AmCham, according to El Caribe, underlines the proposal to sell 49% of the shares of the state-owned Dominican Petroleum Refinery to another country's similar state agency (Petroleos de Venezuela - PDVSA) as of particular concern. Moreover, the growing dependency on one supplier of such a strategic product such as petroleum-one of the prime motivations for the deal-"exposes the country to a significant risk and calls for reflection... given the limited storage facilities that the country has, any interruption in supply, for any reason whatsoever, would paralyze the local economy."
The AmCham goes on to say that it had alerted when the Dominican government acquired the 50% share that belonged to the Shell Company, pushing aside any private participation in the operation, that this could create inefficiencies and distortions in this strategic sector of the economy.
The AmCham press release mentions the acquisition of power distribution company Ede-Este by the government was arguably as a way of ending a messy series of lawsuits, but has added to growing concerns on the reversal of privatization.
Finally, the document says that for the country to continue to progress and compete, the role of the state has to be clearly defined. The business group advocates that this role be one of establishing norms, of promotion, of a regulator and of a controller.
The proposal is for the sale of Refidomsa for US$130 million, to be paid in oil supplies. Listin Diario reports that the purchase could include Opuvisa, the propane gas deposit in Azua that would add another US$25 million to the purchase.
More... (http://www.dr1.com/index.html#6)
In a press release, the chamber maintains that this sends a worrisome signal to the people in the private sector and is likely to have a dissuasive effect on decisions concerning direct investment in these agents in these areas.
The statement issued by the AmCham, according to El Caribe, underlines the proposal to sell 49% of the shares of the state-owned Dominican Petroleum Refinery to another country's similar state agency (Petroleos de Venezuela - PDVSA) as of particular concern. Moreover, the growing dependency on one supplier of such a strategic product such as petroleum-one of the prime motivations for the deal-"exposes the country to a significant risk and calls for reflection... given the limited storage facilities that the country has, any interruption in supply, for any reason whatsoever, would paralyze the local economy."
The AmCham goes on to say that it had alerted when the Dominican government acquired the 50% share that belonged to the Shell Company, pushing aside any private participation in the operation, that this could create inefficiencies and distortions in this strategic sector of the economy.
The AmCham press release mentions the acquisition of power distribution company Ede-Este by the government was arguably as a way of ending a messy series of lawsuits, but has added to growing concerns on the reversal of privatization.
Finally, the document says that for the country to continue to progress and compete, the role of the state has to be clearly defined. The business group advocates that this role be one of establishing norms, of promotion, of a regulator and of a controller.
The proposal is for the sale of Refidomsa for US$130 million, to be paid in oil supplies. Listin Diario reports that the purchase could include Opuvisa, the propane gas deposit in Azua that would add another US$25 million to the purchase.
More... (http://www.dr1.com/index.html#6)